BTL repossessions rocket by 28% in the first quarter

BTL repossessions rocket by 28% in the first quarter

0:06 AM, 23rd May 2023, About 6 months ago

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There’s grim news for BTL landlords and homeowners alike as the cost-of-living crisis tightens its grip to push up mortgage repossessions, UK Finance reveals.

The trade body says that in the first quarter of the year, there were 410 buy-to-let properties that were taken into possession – a 28% increase from the previous quarter.

For residential homes, the latest data shows that 750 mortgaged properties were taken into possession, which is a rise of 50% from the previous quarter.

Buy-to-let mortgages in arrears are increasing

However, the figures also show that buy-to-let mortgages in arrears are increasing at a faster rate than residential mortgages with BTL mortgages growing by 16% to 970 mortgages.

UK Finance also warns that buy-to-let mortgages in early arrears increased by 33%, or 850 mortgages.

The trade body says: “It is important to note, however, that percentage increases can look large when there is a low base.

“While these numbers are small, lenders know that people are worried about their finances.

“This is why buy-to-let landlords are offered the same tailored forbearance and proactive support from their lender.”

Struggling to keep up with the rising living costs

However, UK Finance is also warning that more households are struggling to keep up with the rising living costs.

It says that due to increasing interest rates and the end of government energy bill subsidies, there’s been a rise in the number of households in early arrears.

That means the mortgagee owes around 2.5% to 5% of their outstanding mortgage balance.

The organisation says struggling borrowers should speak with their lender and, over the past year, nearly 200,000 borrowers have received tailored help to see them through tough times.

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