Insurance Blog

Friday, November 21, 2008

Buy to let mortgage repossessions increase

The Council of Mortgage Lenders (CML)today published quarterly data and analysis on buy to let mortgage arrears and repossessions for the first time, having previously published data twice a year.

The Council of Mortgage Lenders reports that 1.44% of mortgages were at least three months in arrears as at the end of September 2008.

*This was up from 1.33% at the end of June. The number of cases in arrears at the end of September was 168,000, 8% higher than the 155,600 at the end of June.

Due to the credit crunch the number of households in arrears by the end of the year is likely to exceed the previous forecast of 170,000.

The report also states that 0.1% of all mortgaged properties were repossessed in the third quarter of 2008, up slightly from 0.09% in the second quarterto 11,300.
This is 12% higher than the 10,100 in the second quarter.
The CML expects the total number of repossessions by the end of 2008 to be around 45,000.

Buy-to-let mortgages have in the past shown better performance than the overall mortgage market in terms of payment defaults.
But in the third quarter the payment defaults of buy-to-let landlords has worsened more rapidly than the rest of the mortgage market.
This is probably due to falling rents and an over-supply of rental property in some localities, resulting in many landlords being unable to let their property or achieve high enough rents to support their borrowing commitments leaving them with a mortgage shortfall. with the housing market stagnant, it is becoming more difficult to sell.
At the end of September 2008, 1.58% of buy-to-let loans were in arrears (up by nearly .5% from 1.10% at the end of June), compared with 1.44% of all mortgages.

The number of buy-to-let mortgages taken into possession in the third quarter in the UK was 900, the same as in the first and second quarters of the year, representing 0.08% of all buy-to-let mortgages (compared with 0.1% across the mortgage market as a whole).
A number of factors will affect the number of buy-to-let mortgage repossessions, including the extent to which buy-to-let mortgage lenders appoint 'receivers of rent' as an alternative to repossession.
Mortgage lenders may prefer this route in many cases where the buy to let tenants are paying their rent however the landlord is not paying the mortgage.

Landlords can protect themselves and purchase rent guarentee insurance from UK landlord and buy to let insurance comparison site http://www.landlord-insurance.net.

Labels: buy to let insurance, credit crunch, landlord insurance

Friday, October 31, 2008

Landlords and buy to let Insurance to beat credit crunch

Many people who bought into the 'buy to let' dream of owning additional property for income or retirement are now suffering not only from falling house prices ( and in some cases negative equity) and empty properties, unable to be let due to too many available in the market.

Whether your additional property is let or empty, Landlords must protect their investments against unforeseen risks with Landlord Insurance.

At UK Commercial Insurance owned Landlord-Insurance.net you can save money and beat the credit crunch by comparing most of the Landlord Insurance policies and covers available to Landlords in the UK.

The site allows you to purchase cover whatever type of property or tenants you have. Cover is available for properties let to Professionals, Students, Flats, Asylum seekers, DSS and Holiday Homes.
Additonally Unoccupied property insurance cover is available for up to nine months for properties that are empty or difficult to let.

For a small fee Landlords can also have peace of mind by purchasing Landlord emergency assistance insurance which provides tradesman to carry out immediate repairs at your property, which otherwise could take two days or more to arrange, leaving unhappy and unsatisfied tenants and perhaps putting your property at risk to flooding etc..

Labels: buy to let insurance, credit crunch, landlord insurance