© Reuters. Landlords mortgage arrears double, new data reveals
Proactive Investors – Increasing numbers of landlords are struggling to keep up with mortgage payments, figures revealed on Friday.
In the final quarter of 2023, buy-to-let mortgage arrears more than doubled compared 2022.
This 124% increase has been primarily linked to the burden of high interest rates.
According to UK Finance, there were 13,570 instances of buy-to-let mortgages in arrears; however, the number represents just a small fraction of the nearly two million landlord mortgages in total.
The frequency of these arrears, although mostly of low value, has surged by 18% compared to the preceding quarter.
Graham Cox, a broker at Mortgage Hub, said: “The surge in interest rates has led to either unaffordable refinancing costs or more void periods due to higher rents.
“The situation is particularly bad in London for landlords and tenants alike.”
Repossessions have escalated to levels not seen since the onset of the pandemic, as reported by UK Finance.
The situation is exacerbated for those with interest-only buy-to-let mortgages, which account for more than 80% of the market.
Meera Chindooroy of the National Residential Landlords Association noted that the rising mortgage rates have pushed many landlords to exit the market, further intensifying the rental housing shortage.
