news | 2 weeks ago | Jodie Bradley

Molo reduces two-year fixed and tracker products’ stress rates across BTL range

Molo Finance, the fully digital mortgage lending platform, has announced reductions in its BTL stress rates across its two-year fixed and tracker products.


This is applicable for both UK and non-UK residents. 

The UK resident two-year fixed product stress rates have been reduced from 9.94% to 7.94%, while the UK resident tracker product stress rates have been reduced from 9.94% to 8.39-9.49%.

For non-UK residents, the two-year fixed product stress rates have been reduced from 10.99% to 8.99%.

Non-UK resident tracker product stress rates have been cut from 10.99% to 10.49-10.99%.

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.

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These comprise:

  • two-year fixed rates: higher of pay rate, follow-on rate, or 5.50%
  • five-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%

 

Commenting on the change, Molo’s VP of strategy, Mark Michaelides, said: “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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