Molo and ColCap Complete £300m BTL Securitisation

Molo and ColCap UK have successfully completed their first £300m securitisation of buy-to-let mortgage loans in England and Wales. The deal, known as Molossus BTL 2024-1, contains prime landlord properties and has received an AAA rating from Fitch and S&P Global.

The UK property market continues to show signs of growth.

The senior tranche was priced at 0.95% over Sonia, with 87.5% of the pool receiving the AAA rating. This achievement highlights the strength of Molo’s mortgage lending capabilities and the credit quality of their originations.

“The success of this residential mortgage-backed security deal highlights the strength of Molo’s mortgage lending capabilities and the credit quality of our originations.” - Matt Kimber, CEO of Molo

Australian non-bank finance firm ColCap took an 80% shareholding in UK digital mortgage lender Molo last March, with the aim of leveraging Molo’s digital expertise to accelerate its international expansion into the £310bn UK mortgage market.

 Molo CEO Matt Kimber

ColCap UK executive director Esther Morley added: “Today’s successful residential mortgage-backed security announcement demonstrates growing confidence in the UK property market and in the quality of Molo’s BTL portfolio. This strategic move with Molo is the first of many and demonstrates our commitment to innovation.”

The deal marks the beginning of a new chapter for ColCap in the UK market, setting the stage for further collaborations and growth opportunities, benefiting both their UK operations and broader global presence, including ColCap Australia.

The UK mortgage market continues to show signs of growth and innovation.

This securitisation deal is a significant milestone for Molo and ColCap, demonstrating their commitment to innovation and growth in the UK mortgage market.