Molo has launched a semi-commercial mortgage proposition for UK domestic borrowers, with loan sizes starting from £45,000.
The specialist mortgage lender said the range was aimed at helping brokers place smaller semi-commercial cases that can prove harder to accommodate through traditional lending routes.
The proposition covers freehold mixed-use properties with residential units above commercial premises, including restaurants, newsagents and other mixed-use assets.
Loan sizes range from £45,000 to £3 million, with borrowing available up to 75% LTV for non-fire-risk properties. Fire-risk properties may be considered up to 65% LTV on a case-by-case basis.
The commercial element must not exceed 40% of the total floor area and the proposition is available to UK domestic borrowers only.
The range 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.
The launch follows Molo’s recent announcement that it had extended its strategic partnership with LMS by joining LMS Panel Link, a move intended to support a more joined-up post-offer process.
Martin Sims, distribution director at Molo, said: “Semi-commercial has traditionally sat in an ‘in-between space’ for some borrowers and brokers.
“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.”
