CHL Mortgages’ arrears levels for its buy-to-let accounts continued to improve in the fourth quarter of 2010, the lender has revealed.
In the three months to the end of December, 2.03% of all CHL’s buy-to-let mortgage accounts were over three months in arrears.
This is compared to industry figures released by the Council of Mortgage Lenders showing an average proportion of 2.62%, a difference of 59 basis points.
And while the industry average for arrears over 1.5% of the outstanding balance is 1.51%, CHL’s figure is 0.31%.
The specialist lender’s gross arrears levels were down by 42% at the end of December, compared to their peak level in February 2009, a trend it expects will continue into 2011.
Bob Young, managing director at CHL Mortgages, says: “I am frankly blown away by the results the team at CHL have achieved. As our figures show, we are consistently outperforming the wider buy-to-let sector by a significant margin.
“CHL’s focus is on driving down arrears levels by working with our borrowers and we fully anticipate that our hard work in this area will produce further improvements throughout 2011.”
Young points out the firm’s relationship with its receivers of rents has played a key part in its success, noting it has a significant number of improving accounts where a company has been appointed to this role.