Molo Home FlexLife eligibility criteria
First time buyers
Yes, we lend to first-time buyers
Customer age
Customers must be at least 18 years old at the time of offer
Customers must be aged max 67 at the end of the mortgage term
Personal income
Minimum gross income of £24,500 required for a single applicant and minimum of £40,000 for joint applicants
We will only accept income sources from employed individuals
Number of Applicants Maximum of 2 applicants per mortgage application
Residential status
Must currently be a resident of the UK
Must have the permanent right to reside and work in the UK and/or be a citizen of the UK
Adverse credit
We accept applicants with a maximum of 1 missed mortgage payment in the past 24 months (secured arrears)
No CCJs in the past 6 years and no unsatisfied CCJs.
No previous bankruptcy / IVA / Debt Management Plan / Recovery Plan or No debt recovery search (individual or director)
No unsecured or secured defaults within the last 3 years
No arrears at the time of application (secured or unsecured) and no more than 2 months in arrears at any point in the past 36 months.
No previous repossessions.
No payday loans in the past 36 months.
Property valuation
We lend on the basis of the property’s current condition and value, which we determine by carrying out a physical valuation.
Take a look at our Tariff of Charges for the cost of this valuation.
Property value
The minimum property value for all properties is £75,000.
Location
Properties must be located in Mainland England & Wales.
Tenure
Freehold, Leasehold, Share of Freehold, Flying Freehold (Maximum 15% of property).
Commonholds are not acceptable.
Leasehold properties must have an unexpired lease of at least 90 years at completion.
View our FAQ page for types of tenure to learn more.
Ex-local authority flats
We can only lend up to 75% loan to value (LTV) on ex-local authority flats.
New build properties
A new build property is defined as a property that was built in the past 24 months (date based on completion certificate).
We can lend up to 90% LTV on new build houses & 85% LTV on new build flats.
Properties less than 10 years old must have a Premier Guarantee, LABC (Local Authority Building Control), an alternative suitable warranty, or suitably qualified professional consultant’s certificate.
Construction types
We lend on properties of standard construction only.
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
We will assess properties above commercial premises on a case-by-case basis.
Self-build
Self-builds are not acceptable.
Mortgage free properties
We offer loans against an existing ‘mortgage free’ property, also known as unencumbered
A ‘mortgage free’ property is a property you own outright with no existing mortgage or loans secured against it
The property must have been mortgage free for a minimum of 6 months. If the property was bought outright, inherited or purchased with a bridging loan and you wish to remortgage within the first 6 months of ownership, we can consider these applications.
Loan purpose
Purchase.
Remortgage.
Remortgage and Borrow More.
Remortgage & Borrow more for debt consolidation purposes.
Repayment methods
All our mortgages are repayment only (capital and interest).
Mortgage term
Minimum 10 years, maximum 40 years.
If you pay the mortgage in full before the end of the term, you may be subject to early repayment charges. All details about ERCs can be found in our Tariff of Charges
Early Repayment Charges
You will have to pay an Early Repayment Charge when, in any year, the amount, or amounts, you repay early is, or are in total, more than 10% of the original Loan. You will not have to pay an Early Repayment Charge when:
You repay the Loan in full using your own resources without borrowing from another Lender
The Loan is repaid in full after your death or critical illness
The Property is sold and the net proceeds of that sale are applied in or towards payment of the Mortgage Debt
The proceeds of a claim under the insurance of the Property are applied in or towards payment of the Mortgage Debt with our written consent.
If you repay all of the Loan before it becomes due for payment, we may ask you to provide proof of source of funds to determine whether an Early Repayment Charge applies.
Portability
Rate and loan are fully portable, subject to criteria at the time of a new application.
Loan size
We offer a minimum loan size of £25,000.
We have specific maximum loan sizes depending on LTV:
- Maximum Loan Size – 95% LTV: £500,000.
- Maximum Loan Size – 75% LTV: £1,000,000.
- Maximum Loan Size – 65% LTV: £1,500,000.
- Maximum Loan Size – 60% LTV: £2,000,000.
Loan-to-Value (LTV)
New Build houses: 90% LTV
New Build flats: 85% LTV
Ex-local authority flats: 75% LTV
Remortgage: 85% LTV
Remortgage capital raise: 75% LTV
Monthly payments
Payments must be made monthly via direct-debit.
Acceptable sources of deposit
Savings.
Sale of another property
Capital raise on 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.
Loans per customer
We allow you to apply for up to 10 mortgages with Molo (Residential and Buy to Let) totalling a maximum value of £3 million.
Your home may be repossessed if you don’t keep up repayments on your mortgage.