Birmingham Midshires offering larger buy-to-let mortgages if you take a five-year fix

by Aaron Strutt

Nov 09 2015

Birmingham Midshires (now BM Solutions) has amended the rental assessment it uses to calculate buy-to-let mortgages over 65% loan-to-value.

Previously, the bank’s rental calculation was based on 125 per cent of the mortgage interest at the initial pay rate or 125 per cent at a notional rate of 5 per cent, whichever is higher.

From 22 November, mortgages above 65 per cent loan-to-value will be subject to a stress rate of 5.49 per cent.

Aaron Strutt, product manager at Trinity Financial, says: “When the loan-to-value is less or equal to 65 per cent, a stress rate of 4.99 per cent will be used. This also applies to all five-year fixes, whatever the loan-to-value.

“BM Solutions is offering some particularly impressive rates and the lender is popular with our brokers. The lender's use different rental calculations to work out how much you can borrow and some lenders are much more generous than others.”

If you are looking to purchase a buy-to-let property and the rental income is £1,250 each month. Providing you have a 35% deposit and a £25,000 minimum income, you should be able to borrow £240,480.

Click here to use our buy-to-let payment calculator.

For help to secure a buy-to-let mortgage, call Trinity on 020 7016 0790.