Molo has temporarily suspended its buy-to-let products citing a delay in capital raising and unprecedented increases in the cost of funding due to spiking inflation.
The lender, which made headlines recently with the launch of its 15-40 year ‘FlexLife Mortgage’, informed brokers and borrowers of the suspension through a statement on its website.
The statement on its website reads: “Molo has temporarily suspended its buy-to-let products and won’t be receiving any future buy-to-let applications for the time being.
“We understand that this news is incredibly frustrating, especially if you just started an application or were in the process of one.
“We’re extremely unhappy with the situation too, which has been caused by recent changes in the capital markets. This has forced us to react with immediate updates.”
The lender elaborated in its FAQ’s that it expects to return to market but is unable to confirm when at present.
The site further reads: “We are anticipating this [a return to lending] to be soon but currently cannot yet confirm a fixed date for this.”
A Molo 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 Molo’s new BTL funding line is not quite ready to launch, which is why products have been withdrawn until further notice.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 BTL funding line is ready and we’ll be proactively sharing this with the market.”
