More buy to let mortgage holders are in arrears than mainstream property owners since records began.

So far, the buy to let market had been performing well, but it the Council of Mortgage Lenders (CML) has revealed that the buy to let market is starting to show signs of credit crunch fatigue.

At the end of September 2008, 1.58% of buy to let mortgages were in arrears, whilst 1.44% of all mortgages had payments overdue. In June of this year, only 1.1% of buy to let mortgages were in arrears, showing the dramatic changes of the three months in between.

Experts say that the increase in arrears is due to the scarcity of mortgage deals.

Whilst first-time landlords are unable to enter the market, existing landlords whose fixed rate terms have come to an end are unable to find a good remortgage deal, and so have been forced to revert to their lenders’ more expensive SVRs.

This entry was posted on Monday, November 24th, 2008 at 11:01 am and is filed under Buy to Let Mortgages, Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.