Molo has cut two-year fixed-rate and tracker loan stress rates across its buy-to-let range for British and non-UK resident borrowers.  

The specialist lender says highlights of its changes cover:  

• UK resident two-year stress rates fixes reduced to 7.94%, from 9.94%  
• UK resident tracker stress rates reduced to 8.39-9.49%, from 9.94%  
• Non-UK resident two-year stress rate fixes reduced to 8.99%, from 10.99%   
• Non-UK resident tracker stress rates reduced to 10.49-10.99%, from 10.99% 

The firm points out that the move will benefit “landlords looking for shorter-term fixed rate or tracker products with a view to benefitting from potential future rate decreases, while still achieving levels of leverage required”.  

It adds that the revised stress rate rules will follow:   

• Two-year fixes — set at the higher of pay rate, follow-on rate, or 5.50%   
• Five-year fixes — set at pay rate   
• Tracker rates — set at the higher of pay rate plus 2%, follow-on rate, or 5.50%   
• Variable rates –set at the higher of pay rate plus 2%, or 5.50%  

Molo vice president of strategy Mark Michaelides says: “Affordability has been one of the biggest challenges facing landlords over the past 12 months, so we’re delighted to announce a recalibration of our stress test to reflect current market conditions and help support the private rental market.”