Buy to let mortgage arrears are set to fall below 7,000 by the end of the year according to one lender’s predictions.
Keystone - using Council of Mortgage Lenders’ data - suggests the current figure of 9,300 cases of BTL mortgage arrears in the first quarter of the year will drop to 8,500 when data for the second quarter becomes available.
By the end of the year, this is likely to drop to only 6,600 the lender claims.
“The referendum result was unexpected, the precise impact is unknown, and it is still early to tell what will happen. But we have seen no let-up in demand for buy to let mortgages and we don’t expect to see any change in the downward trend in buy-to-let arrears as a result” says Keystone managing director David Whittaker.
Like many buy to let lenders, Keystone has introduced for individual borrowers a new formula of 145 per cent at pay rate or notional rate of 5.25%, whichever is higher, for its term tracker and three year fixed rate products.