"Cases are often too complex for standard buy-to-let underwriting, but at the same time, they do not necessarily warrant the heavier process and structure that goes along with large-scale commercial lending"
- Martin Sims - Molo
Molo has launched a semi-commercial mortgage proposition for UK domestic borrowers, targeting a segment of the market that has traditionally proved difficult to place.
The range covers freehold properties with residential units above commercial premises, including restaurants, newsagents and other mixed-use assets.
Loan sizes run from £45,000 to £3m, with the lower end of the range specifically intended to give brokers a route for smaller deals that frequently fall outside traditional lending appetite.
What the criteria cover
The proposition is available on five-year fixed-rate products only, with rates currently starting from 6.55% at 75% LTV and 6.85% at 65% LTV. Key criteria include:
Up to 75% LTV for non-fire-risk properties
Up to 65% LTV for fire-risk properties, considered on a case-by-case basis
Commercial element not exceeding 40% of total floor area
Available for UK domestic borrowers only
"Semi-commercial has traditionally sat in an 'in-between space' for some borrowers and brokers," said Martin Sims, distribution director at Molo. (pictured).
"Cases are often too complex for standard buy-to-let underwriting, but at the same time, they do not necessarily warrant the heavier process and structure that goes along with large-scale commercial lending.
"There is often a tendency for some smaller semi-commercial cases to fall into a gap where the property itself is perfectly acceptable, but the available lending options are far narrower than brokers and borrowers expect. Often, the complexity of the process ends up outweighing that of the actual deal. This launch is about giving brokers a straightforward route for placing these cases."
Recent developments at Molo
The semi-commercial launch follows Molo's recent extension of its strategic partnership with LMS, the UK's leading conveyancing services provider, through its joining of LMS Panel Link. The partnership is designed to deliver a more consistent and reliable post-offer process across the mortgage journey.
