You are here: Home - Mortgages - Buy To Let - News -

Landlords in mortgage arrears jump 20%

0
Written by: Lana Clements
08/02/2018
The number of landlords who have fallen seriously behind on mortgage repayments has jumped by 20% in a year, UK Finance figures have revealed.

There were 1,200 buy-to-let mortgages in significant arrears of 10% or more of the outstanding balance in the last three months of 2017 – a fifth higher than the same period a year earlier.

Overall there were 2% more mortgages in arrears of 2.5% or more of the balance, compared to 2016.

The number of buy-to-let mortgaged properties repossessed in the fourth quarter of 2017 was at 600, similar to the same quarter of the previous year.

However, separate data from the Ministry of Justice today showed landlord possession warrants have increased 9% in the final quarter of 2017 from 2016.

London had the highest number of landlord repossessions in the country.

It is a trend that has also been noted by property firms.

Mark Pilling, managing director of Spicerhaart corporate sales, said: “Spicerhaart has also seen a growing trend of increasing repossessions in London, and it is not just lower cost houses, we have also seen an increase in repossessions of properties worth multi-millions.

“I think this is becoming more prevalent as interest-only deals from the 90s come to an end and landlords in London struggle to sell their properties at the prices they need to in order to clear their debt.”

Homeowner arrears fallen

UK Finance figures showed there were 24,700 homeowner mortgages with significant arrears of 10% in the fourth quarter of 2017 – broadly the same level compared to the same period a year earlier.

And the number of homeowner mortgaged properties repossessed in the fourth quarter of 2017 was  8% fewer than in the same quarter of the previous year.

Paul Smee, head of mortgages at UK Finance, said: “Annual homeowner possessions currently stand at a 36-year low, with overall arrears and possessions continuing to decline.

“This reflects the mortgage industry’s continued commitment to appropriate and prudent lending.

“All potential borrowers are carefully assessed against their ability to pay back their loans, and lenders work closely with their customers to ensure that any payment issues are dealt with at an early stage.

“Anyone experiencing difficulty with their mortgage should contact their provider immediately.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week