Our Eligibility Criteria

Check if you are eligible for a Molo mortgage

Version 2.0 – 22nd May 2019

Personal applicants

  • Our loans are available to applications with up to a maximum of 4 individuals.

  • This means that you can apply jointly with other individuals.

Applying as a Special Purpose Vehicle (SPV) limited company

  • Limited Companies must be Special Purpose Vehicles registered within England or Wales.

  • At least one of the following SIC codes must be applied: 68100, 68209. No other SIC codes will be accepted.

  • We will require a full personal guarantee.

  • Currently, we can only accept companies with a single director who is also the only significant shareholder.

  • Take a look at our FAQ page on SIC codes to learn more.

First time landlords

  • Yes.

Portfolio landlords

  • Currently, we do not lend to individuals (or SPV) with 4 or more buy-to-let mortgaged properties.

Customer age

  • All applicants must be at least 21 at the time of offer, and no more than 85 at the end of the loan.

Personal income

  • The Primary Applicant must have a minimum income in excess of £30,000 pa. This can include any of the following sources:

  • Employed basic salary.

  • Private or public pension.

  • Self-employed income.

  • Rent from owned properties, which have been evidenced (have had the same tenants) for at least 2 years. Rent can form up to 50% of net income.

  • Any other form of income will be double-checked by our team.

Residential status

  • All applicants must have lived in the UK for at least the last 3 years.

Adverse credit

  • No County Court Judgements (CCJs) greater than £1,000 in the last 3 years.

  • No unsatisfied CCJs.

  • No bankruptcy or individual voluntary arrangements (IVAs) in the last 6 years.

  • No previous repossessions.

  • Up to 1 arrear in the past 24 months.

Property valuation

  • We lend on the basis of the property’s current condition and valuation. In the cases where we aren’t able to accurately assess the value and characteristics of a property through an automated valuation, we will carry out a physical valuation.

  • Take a look at our Tariff of Charges for the cost of this valuation.

Property value

  • Minimum property value of £100,000.

Location

  • Properties must be located in England or Wales.

Tenure

  • Freehold, share of freehold or leasehold.

  • Commonhold is not acceptable.

  • Flying freehold is not acceptable.

  • Leasehold properties must have an unexpired lease of at least 90 years at the end of the mortgage term.

  • Take a look at our FAQ page on types of tenure to learn more.

Houses in multiple occupation (HMOs)

  • We do not lend to Houses in Multiple Occupation (HMOs).

  • A property is an HMO if:
    • At least 3 tenants live there, forming more than 1 household,
    • AND they share toilet, bathroom or kitchen facilities with other tenants.

Ex-local authority properties

  • The property needs to be worth a minimum of £150,000.

  • We can only lend up to 75% loan to value (LTV) on ex-local authority properties.

  • We will require a physical valuation to decide the suitability of the property.

New build properties

  • Properties less than 10 years old must have a suitable warranty in place, or a suitably qualified professional consultant’s certificate (NHBC Warranty, or similar).

Tenancies

  • We will only accept properties that are let on an Assured Shorthold Tenancy (AST) basis of between 6 and 24 months duration.

  • Student Lets are not acceptable.

  • Holiday Lets, or other short-term lets (including Airbnb or similar) are not acceptable.

Construction types

  • We lend on properties of standard construction. Properties of non-standard construction type will be reviewed on a case by case basis and will require a physical valuation.

  • Properties of standard construction consist of brick and/or block walls under a tiled pitched roof sat on concrete foundations.

Studio flats

  • Studio flats must be at least 30 square metres (323 square feet) with a separate bathroom.

Flats above commercial premises

  • Flats situated above or immediately adjacent to commercial premises.

  • Flats situated above or immediately adjacent to commercial premises that serve hot food.

Self-build

  • Self-builds are not acceptable.

Loan purpose

  • Purchase.

  • Remortgage.

  • Remortgage & Borrow More.

  • We allow all three types of loan on non-portfolio landlords' buy-to-let mortgages.

Repayment methods

  • All our mortgages are interest-only.

  • Rather than having to repay the loan monthly, the full repayment amount is due at the end of the loan period. Therefore, your only monthly payment is the interest fee.

Mortagage term

  • Minimum 5 years, maximum 25 years.

  • If you pay the mortgage in full before the end of the term, you would need to pay an exit fee (take a look at our Tariff of Charges for more information).

Loan size

  • Minimum £25,000 and maximum £250,000 on a single property.

Loan-to-Value (LTV)

  • We currently offer mortgages up to a maximum of 75% LTV.

  • This means your deposit will have to be worth at least 25% of the property's value.

Monthly payments

  • Payments must be made by monthly direct-debit.

Acceptable sources of deposit

  • We accept the following as sources of deposit:

  • Savings.

  • Equity Release (e.g. sale of another property).

  • Gift (from immediate family only).

  • Pension Pot.

  • Endowments/Shares.

  • Builders contribution (up to 5% of the deposit).

Offer validity

  • Molo Mortgage Offers are valid for a period of 6 months.

Legal charge

  • We will require a 1st Legal Charge on the mortgaged property.

  • If the applicant is unable to repay the mortgage, we will have the first call on any funds available from the sale of the property.

Contract changes

  • Currently we do not allow the following amendments to the mortgage contract:

  • Additional Lending.

  • Transfer of Equity.

  • Portability.

  • These changes can only be carried out by remortgaging, rather than by amending an already existing contract.
    • Additional lending: increasing the mortgage loan.
    • Transfer of equity: adding additional people to the contract as equity holders in the property.
    • Portability: transferring the mortgage product to a different property.

Consumer buy-to-let

  • We do not offer loans that are classified as Consumer buy-to-let.

  • We therefore cannot lend to you if both of these statements apply to you:
    • You don’t have any other buy-to-let properties and,
    • You or any of your family members have previously lived in the property that you’re intending to let out.
    Take a look at our FAQ page on “Consumer buy-to-let” for a more detailed explanation.

Let to buy

  • We do not offer loans that are classified as let to buy.

  • We cannot lend to you if you want to purchase a new home for yourself and pay for the mortgage using rental income from letting out your current home.

Loans per customer

  • Currently, we lend on a per property basis and are only able to provide one loan per customer.