As from Monday 10th June, Birmingham Midshires will finally be joining a handful of other lenders by providing experienced property investors with BTL mortgages without the need to satisfy any minimum income levels at application.
Even though a borrower can still only have 3 mortgages across the Lloyds Banking Group brands (which includes Halifax, Lloyds TSB, C&G, BM Sols, TMB, Intelligent Finance etc.) we’re pleased to see that they have removed the minimum income required restriction, recognising that many investors are self employed and even though their accounts may show low net profits, that the rental income generated is the true indicator of affordability.
The ‘broker only’ lender has previously required a minimum income of £25,000 for all applicants but this rule has now been removed as they acknowledge that buy-to-let affordability is based on rental income, rather than personal income. This, they say, makes it more accessible to more landlords.
Your Broker will tell you the behind the scenes updated ‘fine print’ for all BM deals, including that certain provable income will still need to be supplied as part of the application process. BM has also changed its rental affordability calculation, which will now be based on 125% of the mortgage interest.
They say this is because it is the right thing to do to ensure borrowers are in the best possible position to be able to manage future payments if their circumstances change.
BM Solutions “One Minute Mortgage” process remains in place and is available to Brokers 24/7. The One Minute Mortgage provides mortgage decisions in less than one minute and allows borrowers to submit additional borrowing and multiple Buy to Let applications.
With a well tried and tested system, now coupled with ‘no minimum income’ requirements, BM Solutions are clearly hungry for more BTL business.
Changes will come into force from Monday 10 June.
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