BM Solutions has introduced a new stress rate calculation for remortgages with no additional borrowing, also known as ‘like for like remortgages’, where the LTV is 60% or less.
This is the first time such a product variation has been available from BM Solutions.
Clients who remortgage to BM Solutions with no additional borrowing at 60% LTV or less will benefit from a new rental cover ratio of 145% at a reduced stress rate of 4.5%.
The rental cover ratio of 145% will be applied for all clients regardless of their tax band. This will only apply where the selected product has a term of less than five years.
There is no income threshold or additional credit score requirement for this reduced stress rate.
These changes will apply to all applications which are started on or after 26 January.
Decisions in Principle keyed before 26 January and converted to full application at a later date will retain our old stress rates.
To take advantage of the reduced stress rate, a new DIP must be created.
The calculator on the BM Solutions website has been updated to display the reduced stress
rate when the option ‘buy-to-let remortgage (no equity release)’ is selected as application type.
The rental cover calculation has also been updated to include product fees for all applications except remortgages with no additional borrowing. Where the client wishes to add the product fee to the loan, the rent must cover the loan plus the product fee.
Phil Rickards (pictured), head of BM Solutions, said: “We are always listening to feedback from brokers and now more than ever it’s vital for us to be turning that feedback into action.
“We have worked hard on our proposition over the last 12 months, and I’m delighted to be bringing a like-for-like remortgage offering to market.
“The remortgage market is particularly strong and we are pleased to be giving brokers another option for clients who are simply wanting to secure a better rate without raising additional funds, something we haven’t been able to before.”
