Photo by Molo Finance has made a significant move in the UK mortgage market by slashing its buy-to-let rates for the second time in a month. This bold decision is expected to have a ripple effect on the industry, and I’m excited to dive into the details.
Molo Finance’s new rates are set to shake up the UK mortgage market
The lender’s buy-to-let fixed rates now start at 4.55% for a two-year fixed rate for both individual and limited companies up to 75% loan-to-value (LTV), marking a 17 basis points (bps) reduction. Five-year fixed rates for the standard range begin at 5.06%, reflecting a 15bps cut. This is a significant drop, and one that will likely be welcomed by landlords and property investors across the UK.
But what’s behind this move? According to Martin Sims, distribution director at Molo Finance, the decision to cut rates is a response to the recent encouraging inflation news. This, he believes, will further assist intermediary partners when structuring their landlord clients’ investment property finance and secure enhanced future returns.
The UK housing market is highly competitive, and Molo Finance’s rate cuts are a bold move
Molo Finance has been a major player in the UK mortgage market since its launch in 2018. The digital lender has provided technology-driven mortgage lending, with over £1.7 billion mortgage applications submitted across its digital platform to date. Its strategic partnership with ColCap Financial Limited, an Australian privately owned non-bank mortgage lender, has also given it a significant boost.
So what does this mean for the UK mortgage market? In my opinion, Molo Finance’s rate cuts are a clear signal that the lender is committed to staying competitive in a crowded market. With rates starting at 4.55%, Molo Finance is now one of the most attractive options for landlords and property investors.
Molo Finance’s digital platform has processed over £1.7 billion mortgage applications
As the UK mortgage market continues to evolve, it will be interesting to see how other lenders respond to Molo Finance’s bold move. One thing is certain, however - Molo Finance is now a major player in the UK mortgage market, and its rate cuts are a clear signal of its intent to stay ahead of the competition.
“After last week’s encouraging inflation news, we are now able to realign our UK resident BTL fixed rates,” said Martin Sims, distribution director at Molo Finance. “This, we believe, will further assist our intermediary partners when structuring their landlord clients’ investment property finance and secure enhanced future returns.”
Molo Finance’s team is committed to providing technology-driven mortgage lending
