BuytoLet Lender BM Solutions allows Student and Benefits tenants

by Neil Patterson

5 years ago

BuytoLet Lender BM Solutions allows Student and Benefits tenants

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BuytoLet Lender BM Solutions allows Student and Benefits tenants

BMSBM Solutions relaxes its BuytoLet lending criteria to allow landlords to rent to students and benefit claimants

It was recently reported that BM Solutions was looking at changes to its BuytoLet underwriting criteria and the rumors were that they would be looking to remove its £25,000 minimum income requirement.

The initial reaction by some market commentators was that to remove the £25k minimum income would lead to the door being opened to low income households who are more at risk of defaulting, albeit that it could open the door to buyers outside of London, and would be of particular help for self-employed clients.

Another rumored criteria change was regarding the Lloyds restriction on its BuytoLet criteria which only allows a maximum of three buy-to-let properties per customer, across the whole of the Lloyds Banking Group (which now includes major lending brands such as BM Solutions, Halifax, C&G).

So, what has changed? How have BM Solutions relaxed their criteria? Previously, the lender’s list of exclusions included student lets, tenants claiming housing benefit, rent rebates or rent allowance, asylum seekers and tenants benefiting from diplomatic immunity.

With immediate effect BM Solutions has now adjusted its criteria to allow BuytoLet landlords to rent properties to students and benefit claimants. They are also now willing to offer loans on properties with a maximum of five occupants, a stipulation attached to all properties, although BM Solutions has never lent on House of Multiple Occupation, where tenants sign individual tenancy agreements and this still hasn’t changed.

This news comes just over a week after The Mortgage Works has also in dropped its restriction on lending to landlords with tenants who are on housing benefits.

Other lenders which will lend to landlords with student tenants include The Mortgage Works, Godiva, Abbey for Intermediaries, Woolwich, Aldermore and Virgin Money.

Howard Reuben, Principal of H D Consultants says that these most recent criteria changes are testimony that Lloyds is pursuing more business. He says “This criteria update appears to back up the news that BM Solutions is looking increase business via criteria rather than chasing the rate. This is a controlled measure which will provide some relief to a number of landlords”

From 19th March, BM Solutions has announced new semi-exclusive products starting at 3.89% up to 75% LTV available for purchase and remortgage, and which also benefits from a £500 cashback too.

To discuss any Buy-to-Let deal with our preferred broker please call us on 01603 489118 or email

If you would like to add your own requirements and search for the most popular available Buy to Let products please click here

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Kevin Thomson

5 years ago

I'd like to remortgage a 6 bedroom student HMO, but there doesn't seem to be any good rates out there for this kind of property.

5 years ago

This isn't correct. BM still do not allow student lets. The recent policy change removes the restriction on benefits claimants only.

Howard Reuben

5 years ago

Hi Michael5

I can categorically confirm that this is indeed correct and I have this in writing from BM Solutions as well as just double-checking with my relationship manager who has re-affirmed this information to me.

As a professional, whole of market Broker I always carry out due diligence before publishing any articles or comments and I can assure you that BM are indeed now providing solutions for Student Let properties.

My Relationship Manager has just advised me however that their own website is not being updated until mid-April on their criteria pages, hence I strongly recommend always working with whole of market Advisers who have inside knowledge on providers criteria and product ranges.

Hope this helps.



5 years ago

Does this mean a vote of confidence from lenders for the forthcoming advent of UC.
They presumably have EVERY confidence that HB tenants will pay their UC HB to the LL.
Such confidence; if this is what it is; is somewhat misplaced, especially when one sees the results of the recent UC pathfinder trials.
Do these lenders know something about UC that LL don't!?
LL are increasingly exiting the HB knowing the UC storm is approaching!!
These lenders I believe are being very naive.
Surely they must have some sort of policy which requires any UC tenant to have a guarantor!?
If the vast majority of small LL have no confidence in UC why do lenders seemingly have no concerns.
Or is it they will have to take a gamble as they can see that the PRS will be needed even more, especially when the Romanians and Bulgarians turn up in their hundreds of thousands demanding to be housed; along with receiving all the other benefits our wonderful welfare state provides to anyone who can make it our shores, illegally or NOT!!
I think lenders will be suffering many more deliquent loans as the small LL who invests in UC type property just won't appreciate the risks they are running with HB tenants when UC is introduced.
The big boys will be OK as they are astute enough to manage things; NOT so the naive small newbie LL looking for a better place to stash his savings rather than in a VERY poorly behaving savings account!!
There will be blood on the streets!!

5 years ago

This is a great article and very helpful for college students.

Thank you,


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