BM Solutions scraps niche lending product

BM Solutions last week revealed it was closing its House 2 House product range to new business and launching two-year fixed rate products.

The firm reports that the niche product, used for lending on second homes, accounted for just 0.2 per cent of all Lloyds Banking Group lending and will be closed due to lack of demand.

A spokeswoman for the group says: “The primary use for this product is lending on second homes, and customers will be able to borrow for these purchases through other mainstream brands within the Group.”

“Lending on House 2 House was based on earned income rather than rental assessment. Customers can now choose from the Halifax mainstream product range as the customer will require the loan for a second house purchase. If the property that the customer is purchasing has a rental value then the can select a product from the general buy-to-let range.”

BM Solutions have also introduced two-year fixed rate products at 75 per cent LTV. Rates start at 4.99 per cent with a £995 flat fee.

Rates have been reduced by 0.10 per cent on low percentage fee, 0.50 per cent and 1.25 per cent, two-year fixed rate products at 75 per cent LTV. Rates now start from 5.14 per cent.

London and Country’s head of communications David Hollingworth says: “It is always sad to see an option disappear unless it is completely duplicated through other products. Having different criteria and different niches at your disposal is always what brokers would like to have. You have to accept that practicality will always have a role in that.”