Some 630 buy to let mortgaged properties were taken into possession in the second quarter of this year, according to figures released by lenders’ body UK Finance.

But despite this stark figure, this is actually 22% fewer than in the previous quarter and 20% less than one year previously. 

Overall, BTL possessions remain significantly below long-term averages. 

There were 8,390 BTL mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter, some 6% fewer than in the previous quarter.  

Within the total, there were 2,980 BTL mortgages in the lightest arrears band (representing between 2.5% and 5%). 

This was 7% fewer than in the previous quarter.

UK Finance says: “Possessions currently taking place predominantly relate to older mortgages, with more than two-thirds of possessions relating to mortgages arranged at least a decade ago. 

“For customers who have been struggling with payments for a long time, repossession enables them to exit their mortgage while retaining as much of their home’s equity as possible. 

“However, lenders will always seek to ensure customers remain in their homes, with possession only ever taking place as a last resort once all other options have been explored with the customer.”

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