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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.

“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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