Heron Financial arranged a £221,000 buy-to-let mortgage at 49% LTV for a couple in their 30s, one employed in utilities, the other self-employed in finance, purchasing a £450,000 four-bedroom detached house in Peterborough as a rental investment. The £229,000 deposit was funded by equity released from an existing property, with the strong deposit position landing the case comfortably inside the sharpest BTL pricing tier. Heron Financial placed the case with BM Solutions, with the mortgage completing on May 2026.
The clients
The clients were a couple in their 30s, stepping into property investment together. One applicant works in utilities through standard PAYE employment; the other is self-employed in a finance professional role, running their own business as a sole trader or limited company director.
They came to Heron Financial with a clear plan: buy a four-bedroom detached house in Peterborough as a rental investment, funded by equity released from an existing property. The £229,000 deposit gave them access to a 49% LTV BTL mortgage, comfortably inside the sharpest pricing tier on the BTL market. The case needed a lender comfortable on two specific points: a mixed employed and self-employed couple, and a BTL purchase funded by equity from another property.
The case at a glance
- Buyers: Joint BTL investors, one employed, one self-employed
- Nationality: British
- Age bands: 30–39 (both applicants)
- Occupations: Utilities professional (employed) + finance professional (self-employed)
- Property type: Four-bedroom detached house
- Location: Peterborough, Cambridgeshire
- Purchase price: £450,000
- Lender valuation: £450,000 (matched purchase price)
- Deposit: £229,000 from equity released from an existing property (51% of purchase price)
- Loan amount: £221,000
- LTV: 49.11% (well inside the 60% LTV BTL pricing tier)
- Lender: BM Solutions (Birmingham Midshires)
- Transaction type: Buy-to-let purchase, with deposit funded by equity from an existing property
- Repayment method: Interest-only (please verify, typical for personal-name BTL)
- Timeline: Lead 6 March 2026 → Application submitted 20 March 2026 (14 days after lead) → Offer issued 10 April 2026 (3 weeks after application) → Completion 5 May 2026 (25 days after offer) — lead to completion in 60 days
The challenge
A clean BTL purchase at 49% LTV is well within mainstream BTL territory. The interesting points sit in the income shape and the deposit structure.
Mixed employed and self-employed income on a BTL application. Buy-to-let lending isn’t sized on personal income in the way residential mortgages are. It’s sized on the rental income the property will produce. But lenders do require a minimum personal income (typically £25,000) from at least one applicant, separately from rental income, to confirm the applicants can cover the mortgage during void periods or rental shortfalls. Mixed-income couples need both income sources documented cleanly: the employed applicant through payslips and P60s; the self-employed applicant through SA302s (for sole traders) or accounts and salary/dividend statements (for limited company directors).
BTL underwriting at 49% LTV. Buy-to-let lending is stress-tested against an interest coverage ratio (ICR), typically 125% to 145%, at a stressed interest rate. At 49% LTV with strong rental fundamentals in Peterborough, the case had comfortable ICR headroom and access to BM Solutions’ sharpest pricing.
Equity-funded BTL deposit. Raising the £229,000 BTL deposit by releasing equity from an existing property is a well-established route to investment. The capital raise on the existing residential mortgage is subject to that lender’s affordability and capital raise rules. The BTL purchase is then a separate transaction.
Sub-60% LTV BTL pricing. Lender pricing on BTL improves in steps, typically at 75%, 65% and 60% LTV. At 49% LTV, the case sat well inside the sharpest BTL pricing tier on the market.
A four-bedroom detached house at this price point. £450,000 is at the upper end of Peterborough’s market, likely a desirable suburb or commuter area with strong rental demand. The property type (four-bedroom detached) opens up multiple rental strategies: a family let to professional tenants, a sharer arrangement, or a multi-let / HMO conversion if licensing supports it. The strategy chosen drives the expected rental income and the long-term yield.
How Heron Financial approached the recommendation
The Heron adviser focused on the mixed-income BTL underwriting, the lender choice, and the deposit funding coordination.
Mixed-income BTL underwriting. Heron Financial worked through both applicants’ income evidence, the employed applicant’s payslips and P60s, and the self-employed applicant’s SA302s or company accounts, so the lender’s affordability and minimum income checks ran cleanly across both income types.
BTL lender mapping. The lender panel was narrowed to BTL specialists comfortable with mixed employed and self-employed couples at sub-60% LTV. BM Solutions’ criteria fit cleanly.
Rental coverage check. The adviser confirmed the expected rental income on the property comfortably cleared BM Solutions’ ICR requirement at the stressed rate, with headroom that simplified the underwriting at 49% LTV.
Equity release coordination. The £229,000 BTL deposit was funded by capital raised against an existing property. Heron Financial coordinated the deposit funding with the BTL purchase timeline so the cash was available when the BTL mortgage drew down.
Lender choice. BM Solutions (Birmingham Midshires) was the right home for this case. BM Solutions is Lloyds Banking Group’s dedicated broker-only buy-to-let lending arm, with sharp pricing at sub-60% LTV, clean criteria on mixed employed and self-employed joint applications, and consistent underwriting on personal-name BTL purchases. They’re one of the most widely used BTL lenders in the broker market.
Product choice. A BTL fixed rate gave the couple payment certainty on the rental property, important for forecasting yield against monthly cost and protecting the cash-flow position from rate movements during the early years.
The outcome
The mortgage completed in May 2026, 60 days from initial conversation to completion. The couple secured the property with:
A £221,000 BTL mortgage at 49% LTV
A four-bedroom detached rental property in Peterborough
£229,000 of equity from an existing property productively deployed into the investment
Strong BTL pricing inside the 60% LTV tier
A clean placement with a specialist broker-only BTL lender
What this means for buyers in a similar position
If you’re a couple where one of you is employed PAYE and the other is self-employed, joint buy-to-let is genuinely workable. The lender market for mixed-income couples is wide, and BTL underwriting is more forgiving than residential lending because the loan is sized on rental income rather than personal income alone.
The key things to know:
Minimum personal income thresholds apply to at least one applicant, typically £25,000. With a working couple, this is usually easily cleared, but both income types need clean documentation (PAYE for the employed applicant, SA302s or accounts for the self-employed applicant).
The deposit can come from equity released from your main home or another existing property, a well-established BTL deposit structure.
BTL pricing improves sharply below 60% LTV. If you can fund a 35%+ deposit, you’ll access the sharpest tier on the market.
Broker-only specialist BTL lenders like BM Solutions often have the most competitive pricing for mainstream personal-name BTL, and aren’t available direct to the public.
Personal-name versus limited company SPV is a separate decision that depends on your tax position and whether you expect to build a portfolio. A broker plus an accountant should advise together at the start of a property investment journey.
FAQs
Can a self-employed person get a buy-to-let mortgage?
Yes. Buy-to-let lenders accept self-employed applicants, sole traders, partners and limited company directors, subject to minimum personal income evidence (typically £25,000) and the rental income covering the lender’s interest coverage ratio (ICR) test. The personal income assessment uses SA302s for sole traders or salary/dividends and accounts for limited company directors.
Can a couple buy a buy-to-let together if one is employed and one is self-employed?
Yes. Mixed employed and self-employed joint BTL applications are common and well-served by mainstream BTL lenders. The combined personal income across both applicants typically clears the minimum income threshold comfortably. Both income types need clean documentation, payslips and P60s for the employed applicant, SA302s or accounts for the self-employed applicant.
Can you use equity from your main home as a buy-to-let deposit?
Yes. Raising the deposit for a BTL purchase by remortgaging (or taking a further advance on) your main home is one of the most established routes to property investment. The capital raise on the residential mortgage is subject to your existing lender’s rules. The BTL purchase is then a separate transaction on the new property.
Is 50% LTV a good band for a buy-to-let mortgage?
Yes, it’s well inside the sharpest BTL pricing tier. BTL pricing improves in steps, with the best rates typically at 60% LTV and below. 50% LTV gives strong combinations of pricing and rental coverage headroom. Higher LTVs (up to 75%) are also available with most specialist BTL lenders but at higher rates and with tighter ICR tests.
Why might my mortgage end up with BM Solutions rather than a high-street name I recognise?
BM Solutions (Birmingham Midshires) is Lloyds Banking Group’s dedicated buy-to-let lending arm. It’s broker-only and isn’t available direct to the public. Brokers use BM Solutions regularly because their pricing is competitive at the mid-to-low LTV BTL bands and their underwriting is clean and consistent. Lender choice on BTL depends on which specialist offers the right combination of pricing, criteria fit and process.
