Heron Financial arranged a £204,000 buy-to-let mortgage at 64% LTV for a solo finance professional in their 30s, purchasing a £320,000 three-bedroom converted flat in West London, a commuter location in West London with strong Elizabeth line connectivity. The £115,000 deposit came from equity, with the strong deposit position landing the case comfortably inside the 65% LTV pricing tier on the buy-to-let market. Heron Financial placed the case with BM Solutions, with the mortgage offer issued just four days after application and completion in May 2026.
The client
The client was a solo investor in their 30s, working as a finance professional, stepping into property investment with the purchase of a three-bedroom converted flat in West London. They had £115,000 of equity available to fund the deposit and came to Heron Financial wanting to place the case cleanly with a Buy to Let lender comfortable on the property type, the location, and the deposit structure.
West London is a strong Buy to Let location for the price point, yields work for investors and tenant demand is steady from commuters who prefer to be a few stops outside central London.
The case at a glance
- Buyer: Solo BTL investor, employed
- Nationality: British
- Age band: 30–39
- Occupation: Finance professional
- Property type: Three-bedroom converted flat
- Location: West London
- Purchase price: £320,000
- Deposit: £115,000 from equity (36% of purchase price)
- Loan amount: £204,000
- LTV: 64.01% (comfortably inside the 65% LTV BTL pricing tier)
- Lender: BM Solutions (Birmingham Midshires)
- Transaction type: Buy-to-let purchase
- Repayment method: Capital and interest (please verify)
- Timeline: Lead March 2026 → Application submitted March 2026 (four days after lead) → Offer issued March 2026 (four days after application) → Completion May 2026 (initial conversation to completion in approximately six weeks)
The challenge
A clean BTL purchase at 65% LTV is well within mainstream BTL territory. The case worked smoothly because several things lined up.
Buy-to-let pricing tier at 65% LTV. BTL pricing improves in steps, with sharp tiers typically at 75%, 65% and (with some lenders) 60% LTV. The case landed at 64.01%, comfortably inside the 65% LTV pricing band, one of the best tiers on the BTL market and a meaningful step up from 75% pricing.
Rental coverage (ICR). Buy-to-let lending isn’t sized on personal income in the same way as residential mortgages. It’s sized on the rental income the property will produce, stress-tested against an interest coverage ratio (ICR), typically 125% to 145%, at a stressed interest rate. At 65% LTV with strong rental fundamentals in West London, the case had comfortable ICR headroom.
Minimum personal income requirement. Most BTL lenders require the applicant to earn a minimum personal income (typically £20,000 or £25,000) separately from rental income. This helps the lender confirm the applicant can cover void periods or rental shortfalls. A finance professional applicant comfortably cleared this.
Converted flats and BTL criteria. Converted (period) flats face slightly tighter lender criteria than purpose-built equivalents on BTL, particularly around lease length, building structure, ground rent and the presence of any commercial premises in the building. Most BTL lenders are comfortable with standard period conversions, but lender choice matters more than for purpose-built BTL.
Equity-funded deposit structure. A £115,000 deposit funded from equity (whether released from a main home or from a previous property sale) is one of the cleanest ways to build a BTL portfolio. The funds are evidenced through the source transaction (remortgage statement or sale completion) and treated by BTL lenders as standard.
How Heron Financial approached the recommendation
The Heron adviser focused on lender appetite for the property type, rental coverage, and product fit.
BTL lender mapping. Heron Financial narrowed the panel to BTL lenders comfortable with three-bed converted flats in West London at 65% LTV, with workable criteria on rental coverage and minimum personal income.
Rental coverage check.
The adviser confirmed the expected rental income on the property comfortably cleared the lender’s ICR requirement at the stressed rate, with headroom that simplified the underwriting.
Lender choice. BM Solutions (Birmingham Midshires) was the right home for this case. BM Solutions is Lloyds Banking Group’s dedicated buy-to-let lending arm, broker-only, well-regarded for clean BTL criteria, and competitive at the 65% LTV tier. They’re one of the most consistently used BTL lenders in the broker market because their underwriting is straightforward and their pricing is sharp at the comfortable mid-LTV bands.
Property documentation. Lease length, ground rent and service charge on the converted flat were confirmed against the lender’s criteria up front.
Product choice. A fixed rate gave the client payment certainty on the new BTL mortgage, important for forecasting rental yield against monthly cost and protecting the cash-flow position from rate movements during the early years.
The outcome
The case ran exceptionally quickly. The mortgage completed in May 2026, approximately six weeks from initial conversation to completion, a strong outcome on a BTL purchase where the timeline often runs longer. Key milestones:
Offer to completion: 5 weeks
Lead to completion: approximately 6 weeks
The client moved into their new investment with:
A £204,000 BTL mortgage at 64% LTV
A fixed rate
A three-bedroom converted flat in a strong rental location
Equity from a previous transaction productively deployed into property investment
What this means for buyers in a similar position
If you’re a mid-career professional stepping into property investment, a solo BTL purchase at 65% LTV is one of the cleaner places to start. The lender market is wide, pricing is competitive, and the underwriting is straightforward provided the rental coverage and personal income thresholds are met. The deposit can come from equity released from your main home, sale proceeds, or accumulated savings, each treated cleanly by BTL lenders. Lender choice matters more than borrowers expect: BTL specialists like BM Solutions (which most people haven’t heard of) often have the sharpest pricing in the mid-LTV bands and the cleanest criteria for standard property types. A broker who knows the BTL market well can place your first purchase cleanly and set you up for the next one.
FAQs
How does a buy-to-let mortgage work?
A buy-to-let (BTL) mortgage is a loan secured against a property you rent out rather than live in. The loan size is sized on the rental income the property will produce, stress-tested against an interest coverage ratio (ICR), typically 125% to 145%, at a stressed interest rate. Most BTL mortgages require a minimum 20–25% deposit, with the best rates at 35% deposit or more.
What deposit do you need for a buy-to-let mortgage?
Most BTL lenders require a minimum 20–25% deposit (so 75–80% LTV). The best pricing typically sits at 65% LTV (35% deposit) or 60% LTV (40% deposit). At 75% LTV, the rate is higher and the ICR test is tighter.
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 a well-established route to property investment. The capital raise on the residential mortgage is subject to your existing lender’s affordability and capital raise rules. The BTL purchase is then a separate transaction on the new property.
What is a minimum income requirement on a buy-to-let mortgage?
Many BTL lenders require the applicant to earn a minimum personal income, typically £20,000 or £25,000, separately from rental income. This helps the lender confirm the applicant can cover the mortgage during void periods or rental shortfalls. Finance, technology, healthcare and professional services applicants typically clear this comfortably.
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-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, not on brand recognition.
