CML warns of buy-to-let repossessions
News Category: Industry News
Published: 19-Dec-2008
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The financial position of buy-to-let landlords is weakening which could lead to a greater number of repossessions, claims a leading organisation.
According to the quarterly analysis of mortgage arrears and repossessions by the Council of Mortgage Lenders (CML), the payment profile of buy-to-let lending declined in the third quarter of 2008.
At the close of September, 1.58 per cent of buy-to-let loans were in arrears, which had increased from 1.10 per cent at the end of June and compares with 1.44 per cent of all mortgages.
Around 900 buy-to-let mortgages reached repossession in the third quarter, which was equivalent to the number reported in the first and second quarters of the year.
The CML believes that falling revenues in residential letting and a surplus of properties are partial causes of the problems being experienced in residential letting.
In its recently released forecast, the organisation also predicted that 2009 is going to be a "very tough year in the UK mortgage market".
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