SVR stands for “Standard Variable Rate”, which is the rate you will pay after the initial transaction period (usually 2, 3, or 5 years). This rate is variable and is set according to the Bank of England base rate plus a charge for the entire term of the mortgage. If your credit circumstances have changed, Birmingham Midshires can still help you exchange your mortgage product. The difference between the Birmingham Midshires SVR and the rate of a “new exchange offer” product is significant, as it could mean an increase of hundreds of pounds in monthly mortgage payments.
You can switch to a new and better rate with no broker fees, just a fast mortgage transfer service from lenders like Halifax, Barclays, Birmingham Midshires, Virgin Money and Metro Bank, up to 26%. However, if you have one or more properties that are not profitable, Birmingham Midshires will not approve the purchase-to-rent mortgage.
In order to apply for a new mortgage with Birmingham Midshires, you must be a current holder of a Birmingham Midshires mortgage.Birmingham Midshires (BM) has a very interesting history, as it is the compilation of more than 50 construction companies that have been merging since 1849. Now, Birmingham Midshires has become the biggest private employer in Wolverhampton, where it is headquartered. When Birmingham Midshires joined the Group in April 1999, it had savings balances of £5.9 billion and mortgage assets of £9.2 billion. All products offered through Birmingham Midshires are now only available to current Birmingham Midshires customers.
Birmingham Midshires' purchase-to-rent mortgage products are not directly available to consumers; instead, their buy-to-rent plans are only available through intermediaries through their specific brand BM Solutions, which offers a variety of purchase-to-rent mortgage products. Not only is a rental coverage rate of at least 145% needed, but Birmingham Midshires applies an income stress test and requires applicants to be able to cover mortgage payments if interest rates rise to 5.5%.