Molo Finance has suspended its buy-to-let products.
According to its website “recent changes in the capital markets” where it receives its funding is the reason for this change.
Any customer who had a mortgage offer will unfortunately see their application cancelled. Thankfully borrowers who already have finance with Molo will be unaffected.
If you have been affected by this unfortunate turn of events we can help. We are in touch with a few lenders that are offering support. One such lender is offering a re-type of any valuations already carried out, which would mean a full refund of the valuation fee on a new application.
Matthew Barrett our Head of Limited Company Mortgages had to inform a client who had two Molo cases offered, and a further two in the ‘offer queue’.
We sat down with Matt for a quick chat about the challenges he faced following Molo’s announcement suspending all new mortgage lending.
“When Molo initially pulled their products we were certain it would only be the un-offered cases that would be affected. This then transpired to be offered cases as well which was a huge headache for anyone with a Molo mortgage offer or application in progress. My client had his original mortgage product withdrawn, and was offered a new product with a higher rate, which put him in a difficult position. He had a new property with an offer accepted and was at the end of the mortgage process with Molo. If he did he start an application with a new lender it could delay the purchase for 6 – 8 weeks while a new mortgage and the conveyancing went through, or accept the increased rate.
Interestingly one of the properties had received a higher valuation than expected (a rare occurrence in the mortgage world), so again the decision had to be made as to whether to secure a better rate, with the unfortunate possibility the new lenders valuation might come back lower.
Thankfully OneSavings Bank confirmed they would use a re-type of the Molo valuations which is where we decided to move the applications to.
In summary all applications were submitted to the new lender and I am confident all cases will be offered.”
With the Bank of England raising the base rate again last week, it may be prudent to push through your mortgage application as soon as possible.
Regardless of your situation if you need advice about your buy to let mortgage contact us today.
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