Molo Finance, the UK’s first fully digital mortgage lending platform, has launched its first residential product ‘FlexLife Mortgage’, thanks to a funding arrangement with the UK’s largest specialist pensions insurer, Rothesay.
From today, consumers will be able to visit the Molo website and receive a mortgage in principle directly without any physical paperwork.
Molo has provided buy-to-let mortgages since 2018, and the success of this product has put the London-based fintech in a position to launch its first residential product, a mortgage with a fixed-interest rate for up to 40 years.
As a result, first-time buyers and homeowners can now fund their next home purchase direct with Molo – furthering progress on Molo’s aim to make homeownership easier for everyone with a direct-to-consumer offering.
Molo launches this product at a time when a large number of home buyers are struggling to get onto the housing ladder.
As well as providing certainty and security for the life-time of the mortgage, ‘FlexLife Mortgages’ are also designed to be flexible enough to respond to life changes, with product features such as:
- 10% annual overpayment allowance based on original loan amount – a more competitive allowance than most fixed-rate mortgages
- Flexibility to take your mortgage with you when you move homes
- Pay-off entire balance with no penalty upon sale of property or through personal funds
- No early repayment charges for critical illness and/or occurrence of death
Product rates start at 2.92% for a 60% LTV 15-year mortgage, with 25-year and 40-year 60% LTV products available at 2.95% and 3.19% respectively.
95% LTV products start at 3.70% for a 15-year mortgage, with 25-year and 40-year products available at 3.81% and 4.01%.
Speaking about the ‘FlexLife’ mortgage product range Francesca Carlesi (pictured left), CEO and co-founder of Molo, said: “Over the past few years, Molo has quietly built the foundation needed to launch a
residential product.
“The interest and growth we have seen off the back of our buy-to-let product has confirmed our belief that there is a need for a direct, fully digital residential product within the UK market, and we are delighted to be partnering with Rothesay to provide it.
“Our ‘FlexLife Mortgage’ allows customers to enjoy the long-term flexibility and security they deserve along with a smooth home buying experience.”
Tom Pearce (pictured right), managing director, Rothesay, added: “We are really pleased to support Molo in bringing a new, simple, long-term mortgage product to the market which offers borrowers future certainty as well as making it easier for first-time buyers to enter the property market.
“These new mortgages combine the security and predictability that many borrowers are looking for but also offer the flexibility they might need over the course of the loan.
“Rothesay is a significant investor in the UK with over £60bn of assets under management, and these mortgages offer a further attractive investment for us as we secure the future for our pension policyholders.”
John Glen, Economic Secretary to the Treasury, concluded: “I welcome today’s announcement from Molo and Rothesay – which will make the mortgage market more competitive and offer consumers greater security over the long term.
“It’s fantastic to see the market continuing to innovate and expand the range of products on offer to homebuyers, meaning people getting on or moving up the housing ladder will have more options and greater flexibility when picking the right product for them.”
