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.
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.”