The LIBOR rate change & Molo

How does it affect you?

What is LIBOR and what’s happening to it?

LIBOR is the “London interbank offered rate”. It is a benchmark rate by which many lenders (including Molo) calculate the interest rates applicable to the loans they offer. It is in the process of being wound down, with the Financial Conduct Authority advising lenders to transition to alternative rates.

What does this mean for Molo mortgages?

To date, Molo has used LIBOR as the reversionary base rate for our mortgages, meaning it is used in our mortgage calculations and referenced in our documents.

In light of LIBOR being wound down and in response to guidance from the Financial Conduct Authority and the Bank of England, Molo is switching the reversionary base rate on the mortgages we offer  to the Bank of England base rate.

What does it mean for my Molo application?

If you’ve not yet received a Mortgage offer, your application will proceed completely as normal with no changes. If and when you receive a mortgage offer, the change will be reflected in the offer documentation.

If you’ve received a mortgage offer, and don’t yet have a completion date set, we’ll have sent you a revised offer and conditions which reference the change.

What does it mean for my Molo mortgage?

In short, the change will have no consequences during the fixed rate period of your mortgage. 

After the end of any applicable fixed rate period, rather than your interest rate being calculated by reference to LIBOR, it will be calculated by reference to the Bank of England base rate. This means it will vary (in accordance with the mortgage conditions) in line with variations in the Bank of England base rate.

Can I speak to anyone regarding this?

Of course, get in touch with our team at, or use the live chat function on our site.