The number of buy-to-let mortgage arrears looks set to fall below 7,000 by the end of the year, supported by low interest rates and an improving jobs market.
The forecast from Keystone, based on official data from the Council of Mortgage Lenders, suggests that the number of buy-to-let mortgages more than three months in arrears will fall to around 6,600, which if accurate would represent a major drop compared with the 9,300 cases of buy-to-let mortgage arrears recorded in Q1 2016.
Keystone Property Finance’s managing director, David Whittaker, reports that his firm has seen no let-up in demand for buy-to-let mortgages and he does therefore not 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,” he said.
Keystone is continuing to write new business, despite some wider changes in the lending landscape post-referendum, with a range of lending products available.
Whittaker continued: “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.
“We have ensured Keystone has the funding lines in place to provide landlords with the solutions they need and in the four weeks since the vote we have forged ahead with our lending. We are increasing traction with brokers and investors. Optimism is the keyword here.”