Molo suspends buy-to-let loans | Financial journalist

“Molo’s new buy-to-let funding line is not quite ready to launch, which is why the products have been withdrawn until further notice.”

In a statement posted on its website, the specialist lender said it was “extremely unhappy with the situation…which has been caused by recent changes in the capital markets”.

Molo said it has fulfilled its current tranche and its buy-to-lease products will be closed until it receives additional funding. Molo said he “expects it to be soon but cannot confirm a firm date at this time.”

Molo added that he has been “affected by the unprecedented increases in the cost of funding due to soaring inflation and the Bank of England’s base rate hike since the start of the year.” . He said those increases had “significantly worsened in recent weeks”.

The lender explained that the main costs it faces relate to interest rates, adding that its main benchmarks in this area have risen more than 550% since April last year.

The suspension only applies to buy-to-let products and Molo is still operating as normal for its FlexLife line of residential mortgages.

For all rental customers who have not yet received a mortgage offer, Molo will cancel the application and refund the appraisal fee.

If borrowers have received an offer, Molo said he would be in touch with an update on the application and next steps.

A Molo Finance spokesperson said: “Molo has announced that it is temporarily closing its buy-to-let lineup to new apps. Molo is receiving its funding in fixed 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“Molo’s new buy-to-let funding line is not quite ready to launch, which is why the products have been withdrawn until further notice. Molo will be relaunched as soon as the new funding line buy-to-let will be ready and we will proactively share it with the market.”