The UK’s digital mortgage lending platform Molo Finance is partnering with the Australian mortgage lender ColCap Financial following three months of product suspensions.
Following several years of successful growth in its native Australia, and now backing Molo with strategic financial investment, ColCap will take the first step in its international strategy with its recent intention to expand into the UK.
The partnership will provide ColCap’s support towards restarting the lending platform’s growth within the buy-to-let market with access to mortgage funding.
According to the official announcement, Molo intents ‘to relaunch back into the market soon’ following the specialist lender’s April 2022 announcement that it was to suspend its buy-to-let products.
Molo cited the impact of ‘the unprecedented increases in the cost of funding’, ‘spiking inflation’ and ‘Bank of England base rate rises’ as the three main catalysts of this decision.
Recognising ColCap’s understanding of the company’s “strategy and tech-led proposition,” Molo co-founder and CEO, Francesca Carlesi, discusses how the partnership will “integrate ColCap’s product innovation with Molo’s…tech platform, and strengthen our offering further as we work to relaunch back into the market.”
Speaking on ColCap’s expected expansion into the UK, Andrew Chepul, CEO of ColCap, reveals the company is “excited to move into the UK and to deliver new…products in the marketplace, as we have done in Australia.”
“Our partnership with Molo fits perfectly within our strategic plan. We believe our shared values, synergies, and combined strengths will enable accelerated growth for both businesses,” Chepul continues.
Founded in 2006, ColCap is a privately owned leading non-bank financial institution specialising in mortgage lending. It currently has a loan portfolio of over AU$11billion ($7.68billion) through its wholesale, retail and broker distribution channels.