More landlords in buy to let arrears
The number of landlords who have fallen significantly behind on their mortgage repayments rose 20% in the last year, according to data published by UK Finance.
In Q4 2017, there were 5,100 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance, representing an increase of 2% since Q4 2016. However, a fifth of that total had fallen into more significant arrears, of 10% or more of the outstanding balance.
Overall, 600 buy-to-let mortgaged properties were taken into possession in Q4 2017 – the same number as Q4 2016. In comparison, the figures suggested more positive news for homeowners. The number of homeowner mortgages in arrears saw a 7% decline, and repossessions dropped by 8%, to 1,100.
Paul Smee, head of mortgages at UK Finance, said:
All potential borrowers are carefully assessed against their ability to pay back their loans, and lenders work closely with their customers to ensure any payment issues are dealt with at an early stage.
Anyone experiencing difficulty with their mortgage should contact their provider immediately.