Molo Finance enters the residential mortgage market after securing a financing agreement with pension insurer Rothesay.
The digital mortgage platform has been offering buy-to-let (BTL) products since 2018, with the new deal allowing the company to enter the residential market.
Molo does this with its “FlexLife Mortgage” range, with fixed interest rates available over terms ranging from 15 to 40 years.
LTVs available on these products range from 60% to 95%, with fixed rates ranging from 2.92% to 4.01%.
The products include flexible features such as a 10% annual overpayment facility, portability, and the ability to pay off the balance in full at any time without penalty.
Molo’s digital platform allows borrowers to visit its platform and receive a mortgage in principle directly without any physical paperwork.
Molo chief executive and co-founder Francesca Carlesi said it’s the same service that BTL borrowers have been using that will be offered to the residential market.
“The interest and growth we have seen behind our BTL product has confirmed our belief that there is a need for a direct, fully digital home product in the UK market, and we are delighted to partner with Rothesay to provide it,” said Carlesi.
“Our ‘FlexLife Mortgage’ allows customers to enjoy the long-term flexibility and security they deserve, along with a seamless home buying experience.”
Molo’s move is similar to Habito which recently unveiled a fixed rate mortgage with terms of up to 40 years.
Available from 60% LTV to 90% LTV, Habito One’ starts with a 10-year option and increments five years up to 40 years.