Molo has launched a new semi-commercial mortgage product aimed at providing brokers with a streamlined option for smaller semi-commercial deals. This initiative is significant as it addresses a gap in the market where many smaller properties often fall outside traditional lending criteria.
TL;DR: Molo’s new semi-commercial mortgage offers loans from £45,000 to £3m, with LTVs up to 75% for non-fire-risk properties, helping brokers place smaller deals more easily.
What are the key features of Molo’s semi-commercial mortgage?
The semi-commercial mortgage from Molo allows loan amounts ranging from £45,000 to £3 million. It is designed specifically for properties where the commercial aspect does not exceed 40% of the total floor area. The mortgage is available with a five-year fixed rate, starting at 6.55% for loans at 75% loan-to-value (LTV) and 6.85% for those at 65% LTV for fire-risk properties.
How does this impact brokers and borrowers?
This product is particularly beneficial for brokers who have clients needing financing for smaller semi-commercial properties that might not meet the criteria of larger lenders. The ability to secure up to 75% LTV on non-fire-risk properties simplifies the process for borrowers, making it easier for them to access funds and invest in mixed-use properties.
What this means for landlords and investors
Landlords and investors looking to expand their portfolios with semi-commercial properties will find Molo’s offering advantageous. By providing a clearer pathway for financing, Molo enables potential investors to explore opportunities that were previously challenging to fund. This could lead to an increase in investment activity in the semi-commercial sector.
Frequently asked questions
What types of properties qualify for Molo’s semi-commercial mortgage?
Properties must have a commercial element that does not exceed 40% of the total floor area to qualify for Molo’s semi-commercial mortgage.
What are the current rates for Molo’s semi-commercial mortgage?
The rates start from 6.55% for loans at 75% LTV for non-fire-risk properties and 6.85% for those at 65% LTV for fire-risk properties.