31/03/2009 - Buy-to-let mortgage arrears triple
The number of buy-to-let mortgages that are in arrears of more than three months has more than tripled to 26,800 during the past year compared to 2007, according to a survey.
The recent figures from the Council of Mortgage Lenders also showed more than a third of private landlords have tenants who have fallen behind with their rent.
The figures could help explain the significant rise in buy-to-let properties that have been repossessed during the past year, the National Landlords Association said. It could also explain why a growing number of landlords are having problems keeping up with their mortgages, it said.
According to the group, repossessed rental properties more than doubled, jumping from 600 to 1,300 during the same period. More than a third of landlords (37%) said some of their tenants are currently in arrears, while nearly half (44%) said they had experienced the problem during the past six months.
"This is becoming a serious problem for landlords all over the UK," said David Salusbury, NLA chairman. "Paying the rent has to be right at the top of tenants' priorities as even one month's arrears, in this climate, could be the straw which breaks the camel's back."
Copyright © Press Association 2009
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