Mortgage News
CHL arrears back to pre-credit crunch levels
Specialist lender, CHL Mortgages has revealed that its buy-to-let arrears are back to the levels seen before the financial crisis.
Figures for Q1 2011 revealed that 1.95% of all CHL’s mortgages accounts were over 90 days in arrears – a drop of 45% on the same period 12 months ago.
In addition, CHL’s levels for those accounts over 30 days in arrears have also fallen significantly.
The lender also reported that the £295m buy-to-let portfolio it manages on behalf of overseas banking organisation, Irish Permanent International saw a 50% reduction in arrears from Q1 2010 to Q1 2011.
Bob Young, managing director at CHL Mortgages, said; “The fact that CHL’s arrears levels are back in line with a time before the market upheaval shows the quality of our collections processes and the skills and experience of those who work in this part of our business.
“Our arrears levels peaked back in February 2009 and have continued with the downward trend back to where we are today.
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“While there is considerable concern in the industry about the high arrears and possession levels of some specialist lenders who operated during that time, CHL is happy to report that we fully expect our figures to continue moving down during 2011 and beyond.”