Molo has unveiled a new semi-commercial mortgage offering aimed at UK domestic borrowers, expanding their product range in the commercial mortgage sector. This development is significant as it allows investors and landlords to secure financing for properties that blend residential and commercial uses, catering to a growing market demand.
What are the key features of Molo’s semi-commercial mortgage?
The semi-commercial mortgage from Molo offers loan amounts ranging from £45,000 to £3 million. Borrowers can access up to 75% loan-to-value (LTV) for properties that do not pose fire risks, while those with fire risks can secure up to 65% LTV on a case-by-case basis. Importantly, the commercial component of the property must not exceed 40% of the total floor area.
How does this mortgage benefit landlords and investors?
This new proposition is particularly advantageous for landlords and property investors looking to finance mixed-use properties. With the ability to secure significant funding, landlords can invest in or enhance properties that combine residential and commercial spaces, potentially increasing rental income and property value.
What this means for the commercial mortgage market
The introduction of Molo’s semi-commercial mortgage is a notable shift in the commercial mortgage market, reflecting the increasing interest in mixed-use properties. This product could stimulate investment in the sector, offering more options for borrowers and potentially leading to greater competition among lenders.
Frequently asked questions
What types of properties qualify for Molo’s semi-commercial mortgage?
Properties that qualify must have a commercial element that does not exceed 40% of the total floor area, with specific LTV limits depending on fire risk status.
What are the interest rates for this mortgage product?
Interest rates for Molo’s semi-commercial mortgage start at 6.55% for 75% LTV and 6.85% for 65% LTV, available only on five-year fixed-rate products.