You can no longer let your property to family members through BM Solutions one of U.K.’s largest buy to let lenders
Following regulatory changes BM Solutions, one of U.K.’s largest buy to let lenders, has decided to come out of the regulated buy to let market. A buy to let loan becomes ‘regulated’ when a landlord buys a property with the use of a mortgage and subsequently rents it out to a close family member who will then reside in that property.
This is a huge blow for the regulated buy to let market as we have seen a number of lenders now pull out of this including the likes of Coventry Building Society.
I personally used the regulated buy to let offering quite a lot specifically around parents often wanting to buy properties for their children to live in and then maybe past the assets on at a later stage.
Unfortunately regulated buy to let mortgages are simply being seen as too risky and lenders would want to make a clear distinction about what is regulated and not regulated mortgages.
BM Solutions has also cut its ties with the self build community by withdrawing self build mortgages including new business and product transfers and further advances. This move is very regrettable because under the previous HBOS brand and in particular The Mortgage Business self build mortgages were one of their unique selling points.
For more information on buy to let mortgages please contact us on 020 7993 2044 or alternatively complete the online enquiry form on the right-hand side of this page
- Self Build mortgages, including new business, product transfers and further advance applications
- Regulated Buy to Let applications, including Buy to Let mortgages where a family member will reside in the property
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.