CHL posts 4-year low for BTL arrears
The provider’s managing director said that, at the end of June this year, just 1.46 per cent of its buy-to-let book was in arrears, 44 basis points lower than the Council of Mortgage Lenders average.
Mr Young said this represents an ongoing drop for CHL as arrears stood at 1.69 per cent at the end of 2011.
He said: “The fact our arrears levels have now reached a four-year low and continue to reduce month on month is testament to the hard work carried out by our collections team in helping borrowers in difficulty to arrive at a satisfactory solution for all parties.”
Mr Young claimed it was better to manage arrears in-house rather than by outsourcing it.
It comes after research from law firm Irwin Mitchell found homeowners who fell behind on their mortgage payments between 2010 and 2012 are today paying back their debts faster than any time during the financial crisis.
According to the Council for Mortgage Lenders, at the end of the first quarter of 2012, around 1.7 per cent of buy-to-let mortgages were in arrears of more than three months.
Gareth Reynolds, principal IFA for Staffordshire-based MGS Financial, said: “Buy-to-let owners will not struggle as long as they can keep rents coming in on time. An issue can arise when there are no tenants in the property.”