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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.”


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