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Molo reduces stress rates across BTL range

by | Feb 8, 2024

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Molo Finance, the UK’s first fully digital mortgage lending platform, has announced reductions in its buy-to-let stress rates across its 2-year fixed and tracker products.

To support those landlords looking for shorter-term fixed rate or tracker products with a view to benefitting from potential future rate decreases, while still achieving the levels of leverage required, Molo has revised its stress test logic, enhancing landlords’ borrowing options:

●  2-year fixed rates: higher of pay rate, follow-on rate, or 5.50%

●  5-year fixed rates: pay rate

●  Tracker rates: higher of pay rate plus 2%, follow-on rate, or 5.50%

●  Variable rates: higher of pay rate plus 2% or 5.50%

The changes benefit borrowers – both in the UK and abroad – looking to purchase a property or remortgage, complementing the fixed price rate reductions announced on 23rd January 2024.

Commenting on the change, Molo’s VP of Strategy Mark Michaelides says,“Affordability has been one of the biggest challenges facing landlords over the past 12 months, so we’re delighted to announce a recalibration of our stress test to reflect current market conditions and help support the private rental market. We will continue to lend responsibly, providing confidence to brokers and borrowers alike.”

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