Fall In Mortgage Arrears And Property Repossessions

Thursday, May 21, 2015
CML Data Shows Drop In Number Of Mortgage Arrears

CML Data Shows Drop In Number Of Mortgage Arrears

CML Data Shows Drop In Number Of Mortgage Arrears

According to the latest data published by the Council of Mortgage Lenders (CML), the number of UK buy to let mortgage arrears and number of landlords facing repossession of their rental properties has fallen in the first quarter of this year.

A decline was experienced in all types of mortgage arrears, both owner occupier and buy to let lending according the CML data.

Additionally, the latest data published by the Finance and Leasing Association (FLA) also show that the number of second charge mortgage repossessions has fallen by 45.3% in the first three months of 2015, compared to the same period last year.

The decline in the amount of mortgage arrears and number of rental property repossessions could be due to landlords taking greater care to ensure that they are only allowing the best possible tenants into their rental properties and that they are taking extra steps to ensure a continuous rental income is received, allowing them to keep up with mortgage payments.Tenant referencing is vital for all landlords to conduct properly, whether you are a letting agent or a landlord, tenant referencing won’t leave a stone unturned when it comes to checking the background of potential new tenants and will help to protect landlords from renting properties to potentially troublesome tenants.

Rental income can be ensured using rent protection insurance, providing landlords with the continued rental income even if the tenant defaults.

Such specialist products and services are vital to landlord success and can really make the difference between struggling to meet mortgage repayments and facing repossession due to continued financial difficulties.

Paul Smee - Director General - Council of Mortgage Lenders

Paul Smee – Director General – Council of Mortgage Lenders

CML Director General, Paul Smee, said: “Although complacency could be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions. The message remains the same: don’t delay in contacting your mortgage lender if you are experiencing temporary payment problems, as lenders want to help you resolve them, and will only take possession of property as a last resort”.

Sim Sekhon – Legal 4 Landlords

Sim Sekhon of Legal 4 Landlords commented on the published CML data, saying: “We have seen a huge increase in the number of landlords using our specialist services and tenant referencing is one of the busiest parts of our business, providing landlords and letting agents with varying levels of tenant reference reports. Many landlords then opt for rent protection insurance for the term of the offered tenancy to ensure that regular rental income will continue even if the tenant fails to pay the rent.  Our rent protection insurance even covers legal expenses up to £50,000 (GBP) plus the cost of evicting defaulting tenants and will provide 50% of the expected rental income for 2 months after the tenant has been removed, making it the perfect option for landlords to take in order to continue to meet mortgage repayments.”

UK private rented sector landlords can start each new tenancy secure in the knowledge that they have taken the correct actions in order to ensure that they are renting to good, honest tenants who will treat the rental property as though it was their own home, which is the main desire of all decent PRS landlords.

Rent Protection Insurance

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance, Referencing. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.