Mortgage News
CHL buy-to-let arrears drop in Q3
CHL Mortgages has revealed its buy-to-let mortgage book arrears have improved in Q3 to account for 1.7% of its portfolio, compared to an industry average of 2.14%, and predicted the final three months of the year would show further progress.
CHL’s Q3 figures show that buy-to-let loans more than three-months in arrears accounted for 0.46% of its book.
In addition, arrears from receivers of rent made up 0.28% of CHL’s portfolio, and repossessions totalled 0.28%, giving the lender an overall arrears figure of 1.71%.
By comparison, CML figures for Q3 showed that the buy-to-let industry overall has an arrears average of 2.14%. Buy-to-let mortgages more than three months in arrears in Q3 averaged 1.45%, while receivers in arrears amounted to 0.47% and repossessions 0.22%.
The difference between the industry average and CHL’s figures has narrowed, however, from 53bps in Q2 to 43bps in the third quarter.
CHL attributed this to strong new business lending across the industry in the three months to October.
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Bob Young, managing director at CHL Mortgages, said: “We are particularly proud of our work in this area, especially as we continue to manage a book with over 44,000 live mortgage accounts.
“Our emphasis will remain on delivering the human touch to our borrowers and working with them through any potential and/or ongoing payment difficulties they may have.”
He added: “Our work in this area will continue and we believe that 2011 will close with our arrears levels at an even lower percentage – our end of October figure was 1.7% – a fitting end to the year particularly for the hard-working and dedicated teams who work on these accounts.”