Research from the Council of Mortgage Lenders shows that landlords are more reliable with their mortgage payments than home-owners. Just 0.9% of landlords were found to be in arrears of more than three months, compared to 1.7% of home-owners.
Both the number (138,200) and proportion (1.24%) of mortgages with arrears of 2.5% of the outstanding balance in Q1 2014 were at the lowest level recorded in six years, falling from 144,600 and 1.29% from the fourth quarter of 2013. The number of mortgages in arrears fell in all arrears bands, including the most serious. The proportion of mortgages with arrears equivalent to 10% or more of the mortgage balance fell to a miniscule 0.0025%.
Although repossessions increased from 6,100 to 6,400 from the final quarter of 2013 to the first quarter of 2014, the number of repossessions in Q1 2014 was still down 20% (8,000) from Q1 2013.
For Q1 2014, gross buy-to-let loans advanced increased by just 1% compared to Q4 2013. However, it was still an increase of 46% on Q1 2013. Although the growth in the buy-to-let lending market is slowing down, it appears to still be in very good health.
Back to news