Molo Finance has announced that it is suspending buy-to-let (BTL) lending on a temporary basis.

A message on its website states that this is because of “recent changes in the capital markets,” which it where it acquires its funding from, rather than through customer deposits, as is the case for bank lenders.

It explains these changes as being due to both “spiking inflation” and the recent interest rate rises carried out by the Bank of England.

Customers who have not received a mortgage offer will have their valuation fee refunded and their application will be cancelled. Borrowers who already have a BTL mortgage with Molo will not be affected in any way.

“We understand that this news is incredibly frustrating, especially if you just started an application or were in the process of one. We’re extremely unhappy with the situation too,” says the lender’s website.

A Molo spokesperson adds: “Molo’s new BTL funding line is not quite ready to launch, which is why products have been withdrawn until further notice.

“Molo will relaunch as soon as the new BTL funding line is ready and we’ll be proactively sharing this with the market.”