Buy-to-let business update
Molo has temporarily suspended its buy-to-let products and won’t receive applications for the time being. This doesn’t affect those customers who have already completed a loan with Molo.
To understand more about the causes for this change, please read our FAQs below.
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Frequently asked questions
Generally, lenders can be split into 2 different categories – banks and specialist lenders:
- Bank lenders get their funds from customer deposits and in turn lend them out to other customers (as loans or mortgages) at a higher interest rate;
- Non-bank specialist lenders (such as Molo) on the other hand get their funds from capital markets (e.g. from other financial institutions) in return for a fee which we pay to these institutions.
As a non-bank specialist lender, we get our funds from capital markets in set portions (tranches). We complete each tranche with mortgage loans and move onto the next one.
Recent market changes – continued increases in the cost of funding loans due to spiking inflation and Bank of England base rate rises since the start of 2022 – have impacted the natural progression towards the next tranche. This resulted in a need to pause our buy-to-let range until we are able to relaunch with a new funding tranche in place.
Customers who have already completed a loan with Molo are not affected. You will need to continue paying your monthly instalments as per usual.
Customers who were in the process of completing an application with Molo and NOT yet received a mortgage offer, we will be refunding your valuation fee if you have paid it and we will cancel your application.
Customers with an offer already produced, we will be in touch with an update on your application and the next steps you can take.
Yes – If you have already paid for the cost of your valuation, Molo will refund you the cost of this automatically over the coming days
No – this does not affect those customers who have already completed a loan with Molo. You will need to continue paying your monthly instalments as per usual. These changes will only affect any Molo customers who have NOT yet completed their mortgage.
No. We are still operating as normal for our Residential FlexLife mortgage range.