When it comes to mortgages, it's important to understand the different types of rates available. One of the most common types of mortgage rates is the standard variable rate, which is offered by Birmingham Midshires. This type of rate can be beneficial for those looking for a more flexible option when it comes to their mortgage payments. A standard variable rate is a type of mortgage rate that is not fixed and can fluctuate depending on the Bank of England's base rate. This means that your client's monthly payments can change depending on the Bank of England's base rate.
It's important to note that if the Bank of England's base rate rises, your client's monthly payments will also increase. In order to qualify for a Birmingham Midshires standard variable rate, your client must meet certain criteria. Firstly, they must have a rental coverage rate of at least 145%. This means that their rental income must be at least 145% of their mortgage payments. Secondly, they must pass an income stress test which requires them to be able to cover their mortgage payments if interest rates rise to 5.5%.Birmingham Midshires' purchase-to-rent mortgage products are not available directly to consumers; instead, they are only available through intermediaries through their specific brand BM Solutions.
Birmingham Midshires Mortgage offers a variety of purchase-to-rent mortgage products. For landlords with multiple properties, it's important to note that Birmingham Midshires may require an in-depth review of the applicant's property portfolio. When comparing different lenders, it's important to look at both the APR and APRC. The APR and APRC are calculated using a standard method that provides an efficient way to compare quotes from different lenders. This means that if an applicant has one or more properties that are not profitable, Birmingham Midshires will not approve the purchase-to-rent mortgage.