Molo Finance has recently announced a significant reduction in its buy-to-let mortgage rates. This adjustment sees rates dropping by up to 0.33%, offering more attractive terms for potential landlords and investors.

Following these cuts, Molo Finance now offers a more competitive rate of 4.72% for a 2-year fixed rate mortgage targeted at 75% loan-to-value (LTV). This means that landlords looking to either purchase or refinance rental properties can do so with a lower interest cost, potentially increasing their investment returns.

For those looking for more long-term stability in their investments, Molo also provides a 5-year fixed rate starting from 5.21%. This longer duration secures the rate for five years, giving landlords peace of mind against fluctuating interest rates.

Additional Charges for Special Properties

Landlords dealing with Houses of Multiple Occupation (HMO), Multi-Unit Freehold Blocks (MUFB), holiday lets, and new build properties will face a slight premium. Molo has set this at 0.10% above the standard rates, reflecting the higher risk or management intensity these types of properties can entail.

Similarly, any products catering to 80% LTV, which could include both standard and more specialised property types, will also incur a 0.10% premium. This means borrowers looking to secure a larger proportion of the property’s value as a loan will need to budget for slightly higher costs.

A Strategic Move

Mark Michaelides, the Chief Commercial Officer at Molo, explained that these rate reductions were made possible following the company’s successful debut securitisation earlier this month. He highlighted that these new rates are part of Molo’s commitment to provide flexible product offerings that meet the diverse financial needs of UK landlords. According to Michaelides, these changes aim to make Molo’s lending options more accessible and tailored to the varying requirements of property investors.