Landlords and property investors have seemingly received a bit of a boost this morning as BM Solutions (Birmingham Midshires) announced an increase in their maximum loan-to-value (LTV) for buy-to-let mortgages to 80%. From tomorrow, you will be able to get a 20% deposit buy-to-let mortgage from BM Solutions. This change potentially ushers in a shift in the lending landscape of btl property in the UK, however it seems that not every landlord across the country will necessarily benefit. Jade from Oportfolio weighs in on the topic in our latest blog.
Key Details Of The 20% Deposit Buy-To-Let Mortgage Product Change
In an email sent to our brokers at Oportfolio Mortgages this morning, BM Solutions, as well as announcing the new 20% deposit buy-to-let mortgage products, also released the following information:
The updated 80% LTV applies under specific conditions:
- Maximum loan size: £350,000.
- Energy efficiency: Properties must have a minimum Energy Performance Certificate (EPC) rating of A-C.
- Fee inclusion: The total loan, including any fees, cannot exceed 80% LTV.
- Applicable scenarios: This new LTV applies to purchases, remortgages, product transfers, and further advances.
- Launch date: 80% LTV products will be available from the 22nd of November 2024.
- Processes: BM Solutions confirmed there would be no changes to their current application processes.
Expert Insight From Jade Pinkerton, Senior Mortgage Advisor And Property Investor
Jade Pinkerton, Senior Mortgage and Protection Advisor at Oportfolio Mortgages, shared her perspective on the impact of this change:
“Most of the time, buy-to-let mortgages require a minimum deposit of 25%, not 20%, so this move by BM Solutions is a welcome change. However, its practical benefits may vary by region. In London and the South of England, where our offices are based, high property prices make it difficult for rental income to support the higher loan amounts unless the rent is substantial or the borrower earns over £100,000 annually. BM Solutions’ ability to offer top-slicing, which considers additional income, may open opportunities for high-earning landlords in these areas.
On the other hand, this change could be a game-changer for investors looking at properties in the North, where property prices are lower, and rental yields are higher. In these markets, the new 80% LTV could significantly ease the financial barriers to entry. Ultimately, these changes will primarily benefit landlords with strong financial profiles or those targeting more affordable markets with robust rental returns.”
How Oportfolio Mortgages Can Help
Whether you’re an investor in buy-to-let properties in the North, reassessing your property portfolio, or considering options closer to home, Oportfolio is here to help. BM Solutions are an advisor-only lender, which means that you won’t be able to access their products unless it is through a qualified specialist mortgage advisor. If you’re interested in how BM Solutions’ new 80% LTV offering could work for you, contact us today. We’ll guide you through the process and help you make the most of your property investments. Call our team today for a fee free initial mortgage consultation.
