View more on these topics

BM move to pay rate could spark BTL shift

BM Solutions is making an aggressive move to gain a bigger share of the buy-to-let market by shifting to calculating rental income on pay rate.

John Charcol senior technical director Ray Boulger says the move could provoke its rivals to follow suit to avoid losing market share.

He says: “Using pay rate makes a huge difference. It is a very interesting move which will inevitably make the other key BTL players reassess their lending policies. I would be surprised if it did not provoke a move from others.”

The rental income calculation will be amended for all buy-to-let products across its three rental tiers of 125, 110 and 100 per cent.

BM Solutions spokesman Matt Grayson says it expects to take a substantial part of the market following the move.

Brentchase Financial Services mortgage specialist Mike Fitzgerald says: “When lenders decide to calculate on pay rate, they do it to get a bigger share of the market. BM Solutions will be able to fund these type of projects for longer than others would be able to.”

Recommended

Close pub EIS awaits last orders

Close Investments is offering investors a last chance to invest in a pub enterprise investment scheme before new rules are introduced that put a question mark over the diversity of future issues.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com