You are here: Home - News -

BM Solutions cuts BTL stress rate on five-year fixes

by:
  • 13/03/2017
  • 0
BM Solutions cuts BTL stress rate on five-year fixes
BM Solutions has introduced a lower stress rate for purchase and remortgage buy-to-let applications.

From 20 March, BM Solutions will offer five-year fixed products with a stress rate of 5.25%, instead of its standard 5.5% rate.

BM Solutions head Phil Rickards (pictured) said: “The new stress rate forms part of our wider phased plans to support brokers in writing quality business in the new regulatory landscape.

“We created the rental income calculator in November to help higher and top rate taxpayers get the right level of cover for their individual circumstances, and then moved stress rates at the end of 2016.

“We are continuing to invest in our service and commitment to the intermediary market and plans for the next phase are underway.”

Applications submitted prior to 20 March will continue with the stress rate on which the application was submitted at Decision in Principle stage.

In-progress applications must be resubmitted in order to be eligible for the new stress rate

The new stress rate will not apply to further advances and porting applications.

If a customer selects a five-year fixed product for these applications, the standard stress rate of 5.5% will apply where available.

BM Solutions launched an intelligent rental income calculator in November 2016, designed to support brokers through the tax changes by helping them obtain a rental coverage ratio (RCR) relative to higher and top rate taxpayers’ individual circumstances, while keeping RCR at 125% for basic rate taxpayers.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
HM Revenue brass plate
Landlord and property developer gets two years suspended for £218k tax dodge

A property developer and landlord has been sentenced for evading £281,000 in taxes after failing to declare his income or...

Close