Lending Criteria

Version 1.6 – 23rd January 2019

Personal applicants

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

Special Purpose Vehicles (SPV)

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

  • At least one of the following SIC codes must be applied: 64305, 64910, 68100, 68209, 68310, 68320. No other SIC codes will be accepted.

  • Full personal guarantees from all significant shareholders required.

  • All significant shareholders will be underwritten.

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

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

  • Minimum 21 at the time offer.

Personal Income

  • The Primary Applicant must have a minimum income in excess of £20,000 pa.

Residential Status

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

Adverse Credit

  • No previous CCJs.

  • No arrears in the last 24 months.

  • No bankruptcy or IVAs in the last 6 years.

  • No previous repossessions.

Property valuation

  • Molo will lend on the basis of the property’s current condition and valuation. A physical valuation of the property is required where the value and characteristics of the property cannot be accurately assessed through an automated valuation.

Property value

  • Minimum property value of £100,000.

Location

  • England and Wales only.

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.

New Build Properties

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

Tenancies

  • Molo 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 are not acceptable.

  • AirBnB Lets are not acceptable.

Construction Types

  • Molo will 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.

Studio Flats

  • Studio flats must be at least 30 square metres with a separate bathroom.

Flats above commercial premises

  • Molo accepts flats situated above or immediately adjacent to commercial premises.

Let to Buy

  • Let to Buy are not acceptable

Self Build

  • Self build are not acceptable

Loan purpose

  • Purchase.

  • Remortgage.

  • Remortgage & Borrow More.

Repayment Methods

  • Molo only offers mortgages on an interest only basis.

Mortagage Term

  • Minimum 5 years, maximum 35 years.

Loan size

  • Minimum £25,000 on a single property.

Loan-to-Value (LTV)

  • Molo offers loan up to a maximum of 80% LTV.

Monthly Payments

  • Payments must be made by monthly direct-debit.

Acceptable Sources of Deposit

  • Molo accepts the following as sources of deposit:

  • Savings.

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

  • Gift.

  • Pension Pot.

  • Endowments/Shares.

  • Builders contribution.

Offer Validity

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

Legal Charge

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

Contract Changes

  • Molo does not allow the following amendments to the mortgage contract:

  • Product Transfers.

  • Additional Lending.

  • Transfer of Equity.

  • Portability.

Consumer buy-to-let