Molo Finance has launched landlord affordability assessments that allow single borrowers to use their income to support mortgage payments, rather than relying solely on rental income forecasts.    

The digital lender says its affordability assessment is available across all product categories, including houses in multiple occupation, multi-unit freehold blocks and portfolio property investors. 

It says its new assessment is “a practical alternative” that allows borrowers “to leverage their personal income to support their buy-to-let mortgage payments”.  

The firm adds: “Many landlords face difficulties in meeting borrowing requirements solely based on their rental income assessments, often referred to as the interest coverage ratio. This challenge is compounded by today’s high interest rates.” 

It points out that its new method uses data from various sources, including credit bureaus and the Office for National Statistics “to derive a borrower’s net disposable income and make informed lending decisions”. 

Molo Finance vice president of strategy Mark Michaelides says: “We recognise the difficult economic environment that landlords are facing today, so we are delighted to introduce Molo’s affordability assessment, helping investors leverage their personal income to finance property deals.  

“We remain committed to innovation and adaptability in our approach and product offerings, all while maintaining robust affordability standards.”