View more on these topics

Industry defends B2L record

The Association of Residential Letting Agents and the Council of Mortgage Lenders have rebutted press claims that buy-to-lets make up a large slice of mortgage repossessions.

Last week the Financial Times reported that while buy-to-let mortgages account for less than 10% of the market, auctioneers claimed that half of all repossessions handled by them were buy-to-let properties.

The article stated that the reasons for this were rising interest rates and the overdevelopment of new flats in some areas, leaving growing numbers of property investors unable to meet interest repayments.

But the CML says this is misleading and is writing a letter to the FT explaining its position on the matter. It says it has found that less than 10% of repossessions relate to buy-to-let.

ARLA backs this and says the report is “irresponsibly” wide of the mark.

John Heron, chairman of ARLA’s buy-to-let panel, says: “We are disappointed that such stories are being published on the back of anecdotal information.”

ARLA says that industry data confirms that buy-to-let mortgages have lower arrears than mortgages generally as well as fewer repossessions.

But Gary Murphy, a consultant at auctioneers Allsop, who is quoted in the FT article, estimates that half of the repossessions it handles are buy-to-lets: “[Such] investments have become trendy but amateur investors haven’t given it enough thought.”

A spokesman for BM Solutions says: “The credit quality of buy-to-let continues to outperform expectations.”

Recommended

Merrill takes Oakwood stake

Merrill Lynch expanded its mortgage empire last week with the acquisition of a 45% stake in Oakwood Financial, the parent company of edeus.Along with Italian investment company CIR, Merrill Lynch has sunk €300m into Oakwood, landing each investor a 45% stake in the company. The remaining 10% is held by minority inv-estors and Oakwood’s management […]

Capita buys software firm

Capita has bought software provider Synaptic Systems. Synaptic tools allow IFAs to research markets including pensions, life, health, investments and mortgages.

Ridings lament Paymentshield action

The sons of Richard Riding, co-founder of Paymentshield, say they are “heartbroken” at the way the company’s good name is being “dragged through the mud” because of its decision to cut off commission payments to unregulated brokers.Gareth and Michael Riding both left the company in 2005.Michael Riding claims that if the previous owners were in […]

Nationwide reports 34% increase in gross residential lending

Nationwides half-year results show gross residential lending was up 34% to 14.5bn from the corresponding period last year.Net lending was up almost 50% to 5.9bn, the number of mortgage sales were up 17%, and the society appeared in mortgage best buy tables 272 times between April and September 2006.The results show that Nationwide’s three month […]

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.

Newsletter

News and expert analysis straight to your inbox

Sign up