Molo Finance has made a sweeping reduction in their buy-to-let fixed rate mortgage products, slashing rates by up to 71 basis points (bps). The company now offers starting rates as low as 3.94% for a two-year fixed mortgage, available to both individuals and limited companies borrowing up to 75% of the property’s value (known as Loan-to-Value, or LTV).

For those looking at a longer-term commitment, five-year fixed rates begin at 5.19%. This presents a cost-effective opportunity for landlords to secure their investment expenses for a longer period.

Special Deals for Specialised Properties

Molo hasn’t forgotten those dealing with specialised properties like Houses in Multiple Occupation (HMOs), multi-unit blocks, holiday lets, and new builds. These more complex investment properties now have access to rates starting from 4.04% for a two-year fixed rate and 5.29% for a five-year fixed rate. This change opens doors for investors in niche property markets, offering competitive rates for up to 12 lettable rooms or units.

Non-UK residents also benefit from this rate reduction. Both individual and limited company applicants can now enjoy rates starting from 7.54% for capital and interest mortgages and 8.29% for interest-only mortgages, across both two and five-year fixed terms. This is a significant development for international investors eyeing the UK property market.

The Driving Factors Behind the Cut

Molo’s Vice President of Strategy, Mark Michaelides, explained the rationale behind these attractive rate cuts, “With the swap rate trending lower and mortgage market stabilising as we start 2024, we are delighted to announce today a comprehensive reduction across our buy-to-let fixed rate proposition for both UK resident and non-UK resident borrowers looking to purchase or remortgage.”