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BM Solutions revises rental cover calculations

BM Solutions has unveiled a fresh approach to addressing the upcoming buy-to-let tax changes by developing a new rental income calculator built around a borrower’s individual circumstances, while also making policy changes, including increasing the maximum age limit to 80, that will enable the buy-to-let lender, which is part of Lloyds Banking Group, to maintain the minimum rental coverage ratio of 125% for basic rate taxpayers.

The ‘innovative’ move to loosen affordability criteria in order to maintain the rental coverage ratio was made despite the fact that a number of other buy-to-let lenders have raised their coverage ratios to 145% ahead of the upcoming changes to mortgage tax relief and the Prudential Regulation Authority’s consultation on underwriting standards.

Phil Rickards, head of BM Solutions, said: “I’m excited that after investing considerable time and resource in a tailor-made solution rather than a one size fits all approach, we continue to support sustainable buy-to-let lending for borrowers.

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“I’m confident that our approach will continue to help brokers write good quality business.

“While engaging and listening to their needs, we have put our energy into a solution which leads the market and helps navigate a changing environment backed up by the same high level of service that brokers have known for more than a decade.”

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