There was a significant increase in the number of buy-to-let mortgaged properties taken into possession in the third quarter of the year, new figures show.
Data from UK Finance reveals that 800 buy-to-let mortgaged properties were taken into possession in the quarter, an annual rise of 40%.
In total, there were 4,550 buy-to-let mortgages, which equates to 0.23% of all buy-to-let mortgages outstanding, in arrears of 2.5% or more, 5% fewer than in Q3 2018 and 1,170 buy-to-let mortgages with more than 10%, a 1% annual drop.
Mark Pilling, managing director of Spicerhaart Corporate Sales, said: “Arrears remain low, but with weak retail performance and worsening economic data, it’s difficult to imagine this being sustained long into the new year.
“The mortgage possessions figures are concerning – up 19% year on year for homeowners, and 40% for buy to let. UK Finance are right to point out that this stems in part from historic cases but it is nonetheless a significant jump.”