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BM Solutions extends maximum tenancy term

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  • 07/02/2022
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BM Solutions extends maximum tenancy term
BM Solutions, the buy-to-let (BTL) brand of Lloyds Banking Group, said that it will now allow a tenancy term of as long as 36 months under its loans for properties in England, Northern Ireland and Wales.

Private residential tenancies in Scotland have no specific end dates, so this criteria does not apply.

Previously, the maximum letting term allowable on a property subject to a BTL mortgage was 12 months, the company said.

A maximum term of five years remained acceptable when the tenancy was in the form of a Department for Levelling Up, Housing and Communities (DLUHC) model agreement, or its Scottish equivalent.

Phil Rickards (pictured), head of BM Solutions, explained the move: “More renters are looking for longer-term tenancies, and landlords are looking to meet that demand. By extending the allowable tenancy for lending, we’re able to support landlords and renters alike.”

The company said mortgage completions that took place from 7 February would benefit from the extension.

BM Solutions focuses on the BTL, House 2 House, and self-build sectors.

In January, it introduced a stress rate calculation to allow landlord borrowers to remortgage with no additional borrowing where the loan to value (LTV) was 60 per cent or less.

It was the first time the BTL arm of Lloyds Banking Group had made like-for-like remortgages available.

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