Molo launches ‘Savings Booster’ to lower buy-to-let mortgage costs

Molo Finance is introducing a new ‘Savings Booster’ feature on its buy-to-let products.

Money deposited into one of the new accounts linked to a mortgage will reduce the amount of interest paid, in turn lowering the cost of monthly mortgage payments.

According to the fully digital mortgage lending platform, this is not an ‘offset’ mortgage, but works “in a similar way” and it will reduce the balance from which interest is calculated based on how much is paid into the Savings Booster.

“With interest rates at their highest for over a decade, landlords need more options for their buy-to-let mortgages,” Molo co-founder and CEO Francesca Carlesi said.

“The private rental sector is an important part of the UK housing market, and hence landlords need lenders to be more innovative than ever. 

“Molo is aware of the complex financing needs that landlords have, so we have gone beyond typical buy-to-let products to launch the Savings Booster, giving landlords true flexibility over their mortgage payments.”

Customers will be able to “borrow-back” from the account at any time, withdrawing money into their own bank accounts or paying directly to a third party.

Users can check the value of their Savings Booster and withdraw money at any time through the company’s online portal.

Since launching in 2018, Molo has served more than 3,000 customers and originated more than £300m in online mortgage loans, with thirty times year-on-year growth in 2021.