Digital mortgage lending platform, Molo Finance, has announced the launch of its first residential product, backed by a funding arrangement with specialist pensions insurer, Rothesay.

From today, consumers will be able to visit the Molo website to access its new ‘FlexLife Mortgage’ and receive a mortgage in principle directly without any physical paperwork.

Molo has launched the product at a time when many home buyers are struggling to get onto the housing ladder. A recent report by Molo, based on research conducted with over 1,000 renters aged between 25 and 40 years old, found that 91% of respondents thought that owning a house was hard to achieve and one in four aspiring house buyers described the ambitions as “hopeless”.

In response to this research, the new loans from Molo are available for up to 95% of the property value, while the interest rate is fixed for its full-term – from 15 to 40 years. This also means many borrowers may be able to borrow more as affordability does not need to consider potential future interest rate rises.

“Over the past few years, Molo has quietly built the foundation needed to launch a residential product,” said the firm’s CEO and co-founder, Francesca Carlesi.

“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.”

Molo confirmed that 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. The lending platform’s 95% LTV products start at 3.70% for a 15-year mortgage, while 25-year and 40-year products are available at 3.81% and 4.01%.

Rothesay managing director, Tom Pearce, commented: “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.”

Economic Secretary to the Treasury, John Glen added: “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.”

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