Professional landlords are still safe business, says CHL

CHL Mortgages is reminding the buy-to-let sector of the strength of professional landlords following the collapse of Bradford & Bingley yesterday.

The Council of Mortgage Lenders unveiled figures for buy-to-let mortgage arrears in the wake of the bank’s nationalisation.

B&B is the UK’s largest buy-to-let lender.

The latest data from the CML shows 1.1% of all buy-to-let mortgages outstanding are now in arrears of three months or more. This compares with a figure of 1.33% in arrears for the total mortgage market.

Bob Young, managing director of CHL Mortgages, says: “At a time when the buy-to-let sector is under intense scrutiny because of the nationalisation of B&B, these figures at least show that buy-to-let arrears are still below those of the wider mortgage market.

“Buy-to-let lending to genuine landlords – rather than short-term speculators – is not a risky business unfortunately many lenders chose to ignore this in their scramble for volume and their practices have come back to hurt them.”