Buy-to-let arrears 'have passed their peak'

HAMISH_MCTAVISH

The buy-to-let market is showing signs of stabilising after being hit hard by the credit crunch, figures show.


The number of landlords in mortgage arrears fell sharply during the second quarter, while the rate at which lending is contracting eased, according to the Council of Mortgage Lenders (CML).

A total of 29,400 buy-to-let investors were at least three months behind with their mortgage at the end of the second quarter, a 17pc fall compared with the previous three months.

The drop prompted the CML to predict that buy-to-let arrears had now passed their peak.

http://www.telegraph.co.uk/finance/personalfinance/investing/6027697/Buy-to-let-arrears-have-passed-their-peak.html

Interesting.

I had assumed it was far worse than that.

nearlynew

HAMISH_MCTAVISH wrote: »

I had assumed it was far worse than that.

It is McTittish.

The numbers in arrears have gone down because they've been repossessed.

HAMISH_MCTAVISH

nearlynew wrote: »

It is McTittish.

The numbers in arrears have gone down because they've been repossessed.

:rotfl:

This is too easy.....

From the same article, that obviously you didn't bother reading:


The number of rental properties repossessed by lenders also remained static in the second quarter at 1,400, while 2,500 receivers of rent were appointed, down from 2,900 during the first three months of the year.

nearlynew

HAMISH_MCTAVISH wrote: »

:rotfl:

This is too easy.....

From the same article, that obviously you didn't bother reading:


The number of rental properties repossessed by lenders also remained static in the second quarter at 1,400, while 2,500 receivers of rent were appointed, down from 2,900 during the first three months of the year.

Nice one McTittish.

Thrugelmir

Be interesting to see the FSA figures when they are published, as they'll give a 100% statistic. As the CML doesn't cover the "sub prime lenders" only the main stream lenders.

Also a big caveat if you read the article.

Rob Thomas, senior policy adviser at the CML, said: "So long as properties have paying tenants, landlords now have much greater ability to service mortgage payments and we expect arrears to continue to fall as landlords are helped by lower interest rates.

Thrugelmir

This is the FSA view of the BTL market .

When the government introduced mortgage regulation in 2004 the decision not to include buy-to-let lending was based on the distinction drawn between owner-occupiers who face losing their home if things go wrong, and landlords, whose properties are investments and who do not face the same risks.
Since then, the buy-to-let mortgage market has grown very rapidly and unsustainably for some firms, with evidence of poor quality lending and inadequate risk management. There is also growing concern about rising arrears and repossessions and at the extent to which the market has been subject to financial crime, through collusion between new-build developers, valuers and brokers.
This has led people to question why buy-to-let mortgages remain outside of FSA regulation

There's a lot more to be unraveled yet.