The range is available up to 95 per cent loan to value (LTV). Borrowers may also be able to borrow up to six times their income, subject to affordability, as the long-term fixed period means future interest rate rises do not need to be factored in when assessing affordability.
Rates start at 2.92 per cent for a 60 per cent LTV 15-year mortgage and have flexible product features including a 10 per cent annual overpayment facility, the ability to port to a new home, and the option to pay off the entire balance in full at any time without penalty upon sale of the property or through personal funds.
There are also no early repayment charges for critical illness and/or occurrence of death.
For a 25-year fix at 60 per cent LTV, the rate is 2.95 per cent and for a 40-year fix at the same lending tier the rate is 3.19 per cent. The 95 per cent LTV products start at 3.70 per cent for a 15-year mortgage, with 25-year and 40-year products available at 3.81 per cent and 4.01 per cent respectively.
The FlexLife Mortgages have been wholly funded by Molo’s partner, Rothesay.
The launch follows a survey conducted by Molo Finance showed that 91 per cent of 25 to 40-year-old renters, dubbed ‘Generation Rent’, believe owning a house is hard to achieve, with one in four describing the idea as ‘hopeless’ and 82 per cent postponing their plans to buy due to barriers like affordability, increasing house prices, and the pandemic.
The study also showed that 37 per cent of renters feel more pressure to become home owners than to have a successful career, but 48 per cent still think home ownership is unaffordable.
Francesca Carlesi, CEO and co-founder of Molo (pictured), said: “Over the past few years, Molo has quietly built the foundation needed to launch a residential product. The interest and growth we have seen off the back of our buy-to-let product has confirmed our belief that there is a need for a direct, fully digital residential product within the UK market, and we are delighted to be partnering with Rothesay to provide it.
“Our ‘FlexLife Mortgage’ allows customers to enjoy the long-term flexibility and security they deserve along with a smooth home buying experience.”
Tom Pearce, managing director of Rothesay, added: “We are really pleased to support Molo in bringing a new, simple, long-term mortgage product to the market which offers borrowers future certainty as well as making it easier for first time buyers to enter the property market.
“These new mortgages combine the security and predictability that many borrowers are looking for but also offer the flexibility they might need over the course of the loan. Rothesay is a significant investor in the UK with over £60bn of assets under management, and these mortgages offer a further attractive investment for us as we secure the future for our pension policyholders.”
