Mortgage Lending criteria
Product
3.49% Tracker for 2 Years
4.74% Tracker
Cash back £500
Notes: We have not verified this information with the lender. Ask us to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key features Illustration. Please ask your broker for a Key features Illustration
back to buy to let best buys
back to buy to let best buys
Product
3.49% Tracker for 2 Years
4.74% Tracker
Cash back £500
Advances
Upto £1,000,000 60% LTV (Rmg 60%)
Notes
Mortgage is Portable
You can keep this product if you move to a new property and take out a new mortgage with Birmingham Midshires, provided that the new mortgage is for the same amount and is taken out within 6 months of repayment of this loan. If this occurs, any early repayment charges (detailed above), will not be payable.
However, if the new mortgage is taken out in different names Birmingham Midshires will not waive or refund these early repayment charges without the written consent of all original borrowers.
If either the scheme or your circumstances change, you may not be able to keep this product, and any early repayment charges (detailed above), will be payable.
When moving house you will be unable to keep this product if your level of adverse credit increases beyond the maximum allowed.
- Mortgage is NOT for First time buyers
- Mortgage is an EXCLUSIVE product
The maximum LTV for Buy to Let new build houses, flats and apartments including newly converted (within 12 months of application) and previously unoccupied flats is 65%.
Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage.
Let to Buy accepted on the condition that the mortgage placed with BM Solutions is intended for the residential property.
Sub-Sales and Back to Back Transactions
Sub-sales and back to back transactions are not acceptable. A sub-sale occurs when a property is bought and then sold on within six months, i.e. the borrower is buying the property from someone who has themselves bought the property less than six months before. A back to back transaction is a type of sub-sale where the intervening seller buys from the original seller and sells on to the borrower on the same day or within a few days. We also regard as sub-sales cases where the seller acquires the freehold (or superior leasehold) title to the property, which they then immediately sell on to the borrower by the grant to them of a lease (or sub-lease).
£500 Cashback.
You are free to make lump sum or regular overpayments to this mortgage, however the early repayment charges detailed in Section 10, will apply.
If you do make a lump sum payment or overpayment then the amount of interest you are charged, is reduced immediately. This means that you will get the benefit straightaway.
Buy to Let : Accepted
Let to Buy : Accepted
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment Yes
PEP Yes
Pension Yes
Interest only (no RV) Yes
With Profits Yes
Unit Linked Yes
ISA Yes
Split Repayment Yes
Fees
Arrangement : 1.25% of loan Can be Added
Booking : None
Early Repayment Charges
3% of loan to be paid within first 2 Years
Higher Lending None
Valuation
Basic:
upto £50,000 - £315
upto £100,000 - £355
upto £150,000 - £390
upto £200,000 - £430
upto £300,000 - £505
upto £400,000 - £575
upto £500,000 - £640
upto £600,000 - £695
upto £700,000 - £755
upto £800,000 - £810
upto £900,000 - £865
upto £1,000,000 - £920
Min Valuation £40000
AVM - NOT AVAILABLE ON BTL APPLICATIONS.
For properties valued over £1 million please refer to Birmingham Midshires for valuation fee.
Further Advance Arrangement Fee - £299.
The lender will add the Mortgage Account Fee to the loan and for a repayment or part repayment mortgage will include an element of it within the monthly payments to be repaid over the term. No interest will be charged on this fee.
Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lender Conveyancing Fee - £161.27 Payable on completion. A non refundable fee to your conveyancer due before the loan starts. The figure quoted here is an estimate, the total cost of conveyancing may be higher.
Telegraphic Transfer - £35.00 Payable on completion.
Mortgage Account Fee - £275.00 Payable on completion. A Mortgage Account Fee is payable on completion. The fee will be added to the loan. The fee is to cover the setting up, routine maintenance, and closing down of the mortgage account. The fee is non refundable.
Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Yes
Studio Flat Yes
Flying Freehold Refer
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building Yes
Not Accepted
New Build acceptable.
Let to Buy accepted on the condition that the mortgage placed with BM Solutions is intended for the residential property. For applications based on properties to be let please see the BM Solutions Buy to Let product range.
Builder deposit is acceptable up to maximum of 5% of the purchase price. The valuer must be made aware of the deposit incentive at the time the valuation is carried out. Vendor deposit is NOT acceptable.
Holiday and second home, maximum 75% LTV.
Flats over shops and flats over 4 stories may be considered on merit.
Flying Freehold and Commonhold may be considered on their merits.
Unacceptable Property Types: Freehold flats, mobile homes, houseboats, self-build, commercial property, and property on which buildings insurance cannot be arranged.
BM will Consider lending on Leasehold Maisonettes but not Freehold.
New Build accepted subject to terms and conditions, please refer to lender.
The maximum LTV for Buy to Let new build houses, flats and apartments including newly converted (within 12 months of application) and previously unoccupied flats is 65%.
The property may be let under a single Assured Shorthold Tenancy agreement which restricts the tenant from sharing, assigning, sub-letting or making alterations to the property. The Fixed Term must not be less than 6 months and not more than 12 months. The following tenants are not acceptable: Students; tenants who are claiming housing benefit, rent rebate or rent allowance; asylum seekers; tenants who have the benefit of diplomatic immunity; and multiple tenancies.
The maximum number of bedrooms allowed for a Buy to Let property is 5.
Accepted Locations : England, Scotland, Wales, N Ireland
Requirements
Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes
Insurance
Buildings Conditional
Conditions On Loan
Min Loan £25,001/Rmg £25,001
Max Loan £1,000,000/Rmg £1,000,000
Max Portfolio of BTL Loans none
Min Age 25 years
Max Age 75 years
Min Term 5 years
Max Term 40 years
Maximum borrowing is calculated using our affordability model. This takes into consideration the financial commitments of the client and also their household expenditure. To determine the maximum loan please refer to the 'One Minute Mortgage' at bmsolutions.co.uk'.
Let to Buy accepted on the condition that the mortgage placed with BM Solutions is intended for the residential property.
PLEASE CHECK THE BTL CRITERIA BELOW BEFORE SUBMITTING AN APPLICATION:
FTB's (not first time landlords) must demonstrate their income satisfies BM Solutions affordability model through P60 plus last 3 payslips or latest 2 years accounts and provide 3 months' bank statements and proof of deposit.
A £2,000,000 lending limit applies to all Buy To Let borrowing across the Retail Division of Lloyds Banking Group (The Retail Division of Lloyds Banking Group consists of Bank Of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows).
A maximum of 3 properties applies to all Buy To Let lending across the Retail Division of Lloyds Banking Group, of which a maximum of 3 properties can be on House 2 House lending (The Retail Division of Lloyds Banking Group consists of Bank Of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, Lloyds TSB, Lloyds TSB Scotland and Scottish Widows).
Maximum lending on each individual Buy to Let property of £1 million.
Confirmation of anticipated rental income will be provided by the valuer as part of the valuation.
Minimum acceptable property value or purchase price (whichever is the lower) is £40,000.
The property may be let on a single assured shorthold tenancy or to a company on a corporate let. The maximum term is 12 months.
Our consent is not required to renew the tenancy.
The maximum number of occupants is 5. They must all be party to the agreement. It is the landlords responsibility to ensure that all legislation is complied with including (but not restricted to) legislation relating to Tenancy Deposit schemes and HMOs (Houses in Multiple Occupation).
The maximum number of bedrooms allowed for a Buy to Let property is 5.
A minimum income of £50,000 per annum applies to the 2nd and 3rd House 2 House applications across the Retail Division of Lloyds Banking Group.
(The Retail Division of Lloyds Banking Group consists of Bank Of Scotland, Birmingham Midshires, C&G, TMB, Halifax, Intelligent Finance, LTSB, LTSB Scotland and Scottish Widows).
An application will be processed unless this applicant exceeds either the £2,000,000 Buy To Let lending limit or the number of properties allowed, or does not meet minimum income requirement.
The method for repaying the interest only element of the loan must be specified.
As a condition of this mortgage you must take out buildings insurance on the property.
Foreign Citizens Accepted
Ex-Patriates Accepted
Income Multipliers
Rental Income must be 125% of the monthly mortgage payments
Min months in current position 3
Min months in continuous service 12
Min no. of years accounts 2
Average years taken to calculate income 1
Will consider declining profit No
Outgoings
Rental calculation - 125% @ PAYRATE
BTL applicants must have a minimum combined income of £25k for single or joint applications.
BTL applicants minimum number of months in current employment is 3 with 12 months continuous employment, and self-employed applicants must have been so for 1 year.
Birmingham Midshires does not ask for proof of income however they reserve the right to.
Please refer to Birmingham Midshires website to calculate the required rental income at www.bmsolutions.co.uk.
Rental Income must be 125% of the monthly mortgage payments
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education NOT Taken into account
Extra Income:-
Other Income - Guaranteed Add 100% to income before multiply
Other Income - Regular Add 100% to income before multiply
Other Income - Irregular Add 100% to income before multiply
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments No
Non Contributory Pension No
Car Allowance No
Remortgage Max LTV Max% increase
Capital Raising 60%
Home Improvements 60%
Debt Consolidation 60%
School Fees 60%
Holidays/Cars 60%
Buy Other Property 60%
Business Purposes 60%
Divorce Settlement 60%
Unencumbered 60%
Business use for capital raising/remortgages does not include business start-ups.
Remortgage applications not accepted where the customer has owned the property for less than 6 months.
Adverse Credit
CCJs/Defaults : Accept:
1) Max 2 Defaults to a max of £500.00. These must be fully paid at least 24 months ago or over prior to application. This condition does not incur any rate loading.
2) Max 2 CCJs to a max of £500.00. These must be fully paid at least 24 months ago or over prior to application. This condition does not incur any rate loading.
3) Max 1 Defaults to a max of £250.00. These must be fully paid. This condition does not incur any rate loading.
4) Max 1 CCJs to a max of £250.00. These must be fully paid. This condition does not incur any rate loading.
Ignore:
1) CCJs which have been fully paid 24 months ago or over prior to application, and are under or up to £250.
2) Defaults which have been fully paid 24 months ago or over prior to application, and are under or up to £250.
3) CCJs which have been fully paid 72 months ago or over prior to application, and are under or up to £500.
4) Defaults which have been fully paid 72 months ago or over prior to application, and are under or up to £500.
Arrears : Accept:
1) Max 2 missed payments in the last 36 months. This condition does not incur any rate loading.
2) Max 1 missed payment in the last 12 months. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
Ignore:
1) Bankruptcy discharged at least 6 years ago or over.
2) IVA discharged at least 6 years ago or over.
Repossessions : Not accepted.
Repossessions not allowed.
Accept:
Max 2 satisfied CCJ's or Defaults up to a max of £500 WITHIN the last 2-6 years.
Max 1 satisfied CCJ or Default up to a max of £250 WITHIN the last 2 years.
