Landlord arrears found to be half of that homeowners

A new survey has revealed that UK homeowners are over twice as likely as buy-to-let landlords to be in arrears.

According to mortgage servicer Computershire, only 1 in 166 buy-to-let mortgages is in arrears by at least one month. This is in comparison to 1 in every 73 residential loans.

Regional disparities

The figures from Computershare Loan Service’s figures indicate that there is a regional disparity within the figures. 1 in 71 buy-to-let mortgage holders in Wales were found to be in arrears, as opposed to 1 in 667 in the East Midlands.

Similarly, 1 in every 51 residential loan holders in London were found to be in arrears, in comparison to 1 in every 112 in the South West.

The table below shows the disparities between buy-to-let and residential mortgage holders, suggesting those with landlord insurance are less in arrears:

Proportion of mortgages in arrears Buy To Let Residential
East Midlands 0.15% 1.23%
East Anglia 0.20% 1.36%
South East 0.25% 1.10%
South West 0.28% 0.89%
Yorkshire and Humberside 0.55% 1.27%
West Midlands 0.69% 1.25%
North 0.82% 1.23%
North West 0.91% 1.60%
Greater London 0.94% 1.96%
Scotland 0.95% 1.31%
Wales 1.41% 1.81%
Average for Great Britain 0.6% 1.37%

 

 

 

Landlord arrears found to be half of that homeowners

Landlord arrears found to be half of that homeowners

Problems

Andrew Jones, CEO of Computershare Loan Services, noted: ‘When mortgages fall into arrears, problems can arise for borrowers, lenders and tenants, so loans must be administered in a way that takes into consideration the individual circumstances of every customer.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/landlord-arrears-half-that-of-homeowners

 

 

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