No-premium pricing for large HMOs and MUFBs stays as deal shelf-life falls to 13 days
Molo has reduced rates across its specialist buy-to-let (BTL) and semi-commercial ranges for UK-resident borrowers, cutting two-year fixed rates by five basis points (bps) and five-year fixes by seven bps, as lenders continue to reprice in a volatile funding market.
The changes took effect on 19 October. Two-year fixed rates in the specialist BTL range, which covers multi-unit freehold blocks (MUFBs), houses in multiple occupation (HMOs) and new-build properties, now start from 3.66%. Five-year fixed rates start from 5.38%.
Semi-commercial pricing has also fallen, with two-year fixed rates starting from 5.91% and five-year fixes from 6.38%.
The specialist lender, which serves UK and overseas landlords, said pricing across its standard BTL range is unchanged, with rates starting from 3.66%. Rates for non-UK-resident and expat borrowers are also unchanged, at 4.88% and 4.68% respectively, at up to 85% loan-to-value (LTV).
Molo also continues to apply no additional premium for larger properties, including MUFBs and HMOs with 12 or more units or rooms. The lender said this gives brokers greater certainty when sourcing finance for more complex investment properties.
“Landlords and brokers continue to operate in a market where financing costs remain a key consideration and economic conditions can change quickly,” Martin Sims (pictured), distribution director at Molo, said. “Where funding conditions allow, we are committed to passing those benefits on to borrowers.”
Volatile market backdrop
The cut comes as lenders reprice at a rapid pace. Average mortgage product shelf-life fell to 13 days in October from 14 in September, according to Moneyfacts data. The 2026 average stands at 16 days, compared with 20 in 2025. Moneyfacts attributed the shift to swap-rate movements that have led lenders to reprice or withdraw products repeatedly.
Recent moves elsewhere in the BTL market have been mixed. The National Residential Landlords Association’s October market update noted that HSBC reduced selected two-year and five-year BTL remortgage rates, while Aldermore raised selected BTL fixed rates by up to 0.17 percentage points.
Molo’s own pricing reflects that volatility. In July, the lender advertised standard UK-resident BTL two-year fixed rates from 2.85% at 75% LTV. Molo’s October release does not state the LTV for its current standard rates, so the figures may not be directly comparable.
The Bank of England held Bank Rate at 3.75% on 17 September, voting 6-3, with three members preferring an increase to 4%, its summary showed. The next decision is due on 5 November.
What it means for brokers
For brokers, the move widens the options available for landlords with larger or more complex properties, including those buying or remortgaging HMOs, MUFBs and mixed-use buildings. The absence of premiums for properties with 12 or more units or rooms may also reduce the need for pricing adjustments on bigger cases, although lender criteria and fees will still need checking case by case.
Molo’s specialist five-year fixes sit about 1.7 percentage points above the two-year equivalents, a gap brokers may want to explain to clients weighing term length against certainty.
Landlords are also weighing their positions as regulation changes, with the first phase of the Renters’ Rights Act in force since 1 May. Savills said on Monday that firmer yields and fewer alternatives were giving some landlords a growing incentive to stay in the rental market. Borrowing costs will remain a central part of those conversations.
“These latest reductions across our Specialist buy-to-let and semi-commercial ranges provide brokers with more competitive options for clients looking to purchase or refinance, helping investors make the most of emerging opportunities in the market,” Sims said.
Molo’s product guides for UK residents, non-UK residents and expats are being updated from 19 October.
