Mortgage News
BM Solutions changes stress rates
Buy-to-let specialist BM Solution has removed its minimum income stress rate qualification and improved its minimum stress rates for five-year fixes and like-for-like remortgages.
The lender will remove the £55,000 minimum income stress rate qualification.
For purchase, Let to Buy and remortgage with capital raising and further advances, its five-year fixed rate stress rate is the higher of 5.5 per cent or pay rate of one per cent plus, and for five-year fixed rate at 65 per cent LTV or less is the higher of five per cent or pay rate plus one per cent.
On like-for-like remortgage, its five-year fixed rate stress rate is the higher of five per cent or pay rate plus one per cent.
The changes come into force from tomorrow.
Leigh Church, head of BM Solutions, said: “We want to support our landlord customers by offering a simplified approach, while ensuring that they’re able to manage any future rate increases.
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“We keep our affordability models under review to ensure they combine a robust assessment with the flexibility to appreciate different situations.”