Molo Finance is entering the residential mortgage market after entering a funding arrangement with pensions insurer Rothesay.

The digital mortgage lending platform has offered buy-to-let (BTL) products since 2018, with the new deal allowing the firm to enter the residential market.

Molo is doing so with its ‘FlexLife Mortgage’ range, with fixed interest rates available over terms ranging from 15 to 40 years.

LTVs available on these products range from 60% to 95%, with fixed rates ranging from 2.92% to 4.01%.

The products include flexible features such as 10% annual overpayment facility, porting ability, and the option to pay off the entire balance in full at any time without penalty.

Molo’s digital platform allows borrowers to visit its platform and receive a mortgage in principle directly without any physical paperwork.

Molo chief executive and co-founder Francesca Carlesi says it is this same service that BTL borrowers have used that will be offered to the residential market.

“The interest and growth we have seen off the back of our BTL product has confirmed our belief that there is a need for a direct, fully digital residential product within the UK market, and we are delighted to be partnering with Rothesay to provide it,” says Carlesi.

“Our ‘FlexLife Mortgage’ allows customers to enjoy the long-term flexibility and security they deserve along with a smooth home buying experience.”

The move from Molo is similar to Habito which recently unveiled a fixed rate mortgage with a term of up to 40 years.

Available from 60% LTV to 90% LTV, Habito One’ starts with a 10-year option and increments by five years up to 40 years.