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Molo Finance temporarily suspends buy-to-let products

  • 27/04/2022
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Molo Finance temporarily suspends buy-to-let products
Molo Finance has temporarily suspended its buy-to-let products and will not consider any future buy-to-let applications due to capital market uncertainty.

According to its website, the reason for the withdrawal is due to changes in the capital markets, which the firm gets its funding from.

It explained that it had maxed out its current portion of funds allocated to buy-to-let and its new bucket was not ready to launch yet.

“We are anticipating this to be soon but currently cannot yet confirm a fixed date for this,” it said.

It said that there had been “unprecedented increases” in the cost of funding due to rising inflation along, with Bank of England base rate rises since the start of the year.

“Rather than stabilising, these rises have only worsened dramatically over the past few weeks,” it said.

The lender said that for those who have already paid a valuation it would refund the cost of this automatically over the next couple of days.

Current buy-to-let customers will not be affected by the change, and it has no impact on its residential products.

The lender offers mortgages for standard buy-to-let, limited companies, houses in multiple occupation and portfolio landlords.

A Molo Finance spokesperson said: “Molo has announced that it is temporarily closing its buy-to-let range to new applications. Molo receives its funding in set tranches and the current tranche has been filled.

“Molo’s new buy-to-let funding line is not quite ready to launch, which is why products have been withdrawn until further notice. Molo will relaunch as soon as the new buy-to-let funding line is ready and we’ll be proactively sharing this with the market.”

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