New figures suggest that buy-to-let mortgage arrears are set to fall below 7,000 by the end of 2016.
The report, based on official data from the Council of Mortgage Lenders, shows that official estimates suggest there were 9,300 cases of buy-to-let mortgage arrears during the first quarter of 2016. This was down from 10,300 on the previous quarter and from 11,300 in the opening quarter of 2015.
Predictions show that as of the second quarter of 2016, there are 8,500 buy-to-let mortgages standing at more than three months in areas. Estimates indicate that there could be 6,600 arrears by the final quarter of this year.
David Whittaker, managing director of Keystone Property Finance, stated, ‘the referendum result was unexpected, the precise impact is unknown, and it is still rather early to tell what will happen. But we have seen no let-up in demand for buy to let mortgages and we don’t expect to see any change in the downward trend in buy-to-let arrears as a result. Landlords are confident – and lenders have no reason to feel any differently.’
‘There are many landlords out there who still need finance, particularly professionals who are in the process of remortgaging to secure a solid five year-fixed rate or selling their personally-owned portfolios to their limited companies,’ Whittaker added.
With a whole host of tax changes announced by now ex-Chancellor George Osborne, it is vitally important that you are aware of these changes and how they could affect your finances.
Taking out a sufficient landlord insurance policy is vital in protecting yourself against these changes. Alterations in mortgage interest tax relief, coming into force in April 2017, are sure to have an impact on the sector.
Regardless of the number of properties you have in your portfolio, you must have a plan on how to operate and a sound budget to ensure you are not caught out.