Molo Finance has reduced buy-to-let (BTL) stress rates across its 2-year fixed and tracker products.
To support those landlords looking for shorter-term fixed rate or tracker products with a view to benefitting from potential future rate decreases, Molo revised its stress test logic, enhancing landlords’ borrowing options.
For 2-year fixed rates, stress rates now include higher of pay rate, follow-on rate, or 5.50% options, as well as higher than pay rate plus 2%, follow-on rate, or 5.50% for its tracker rates.
For 5-year fixed rates, borrowers can benefit from its standard pay rate, while for variable rates, it is the higher of pay rate plus 2%, or 5.50%.
Mark Michaelides, VP of strategy at Molo, said: “Affordability has been one of the biggest challenges facing landlords over the past 12 months, so we’re delighted to announce a recalibration of our stress test to reflect current market conditions and help support the private rental market.
“We will continue to lend responsibly, providing confidence to brokers and borrowers alike.”
