The value of new buy-to-let (BTL) lending fell by 55.4% year-on-year (YOY) to £6.3bn, according to the latest UK Finance figures.
According to UK Finance, the average gross BTL rental yield came to 6.74%, which is up from 5.85% in the same quarter the year before.
The average interest rate for new BTL loans stood at 5.7% in Q4 2023, an increase from 3.67% a year previously.
The BTL interest cover ratio in the period contracted from 238% in Q4 2022 to 180% in Q4 2023.
The number of BTL fixed rate mortgages outstanding in Q4 2023 came to 1.37 million, an increase of 1.7% on a year previously.
The number of variable rate loans outstanding decreased by 12.7% YOY to 0.62 million.
The report added that there were 13,570 BTL mortgages in arrears over 2.5% of the outstanding balance. This is 123.9% higher than in the same quarter previously.
UK Finance said that there were 500 BTL mortgage possessions in Q4 2023, a rise of 56.3% on the same quarter in 2022.
Earlier this year, UK Finance reported that homeowner and BTL mortgage arrears ticked up in Q4 2023.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
