My brother and I are looking to buy a bungalow on buy to let for our mother to live in. I know there are issues with a relative occupying on BTL mortgages – can you tell me who may give approval?

You are right about it being more difficult. This is because you are letting it to a member of close family meaning it becomes a mortgage under the FSA regulation and a number of buy to let lenders will not look at these, however 2 of the largest will and there are several others besides. The larger ones are part of Nationwide Building society (the Mortgage Works) and Lloyds Banking group (Birmingham Midshires) both of whom are happy to take deals on this basis.