Buy-to-let arrears to continue falling despite Brexit
Keystone Property Finance expects buy-to-let arrears rates to continue falling for the rest of the year from 9,300 in Q1 2016 to 6,600 in Q4 based on Council of Mortgage Lenders data.
An estimated 8,500 mortgages were in more than three months’ arrears in Q2 – and Keystone’s managing director David Whittaker (pictured) expected this trend to continue.
He said: “The referendum result was unexpected, the precise impact is unknown, and it is still rather early to tell what will happen.
“But we have seen no let-up in demand for buy to let mortgages and we don’t expect to see any change in the downward trend in buy-to-let arrears as a result.
“Landlords are confident – and lenders have no reason to feel any differently.”
Buy-to-let arrears were higher last year, standing at 11,300 in Q1 2015.
Keystone reassured brokers that its three funding lines are still open: Paratus AMC funds its buy-to-let products, Together funds ranges aimed at residential and commercial landlords with some adverse credit and Aldermore Bank funds Keystone’s Loyalty Range
Whittaker added: “There are many landlords out there who still need finance, particularly professionals who are in the process of remortgaging to secure a solid five year fixed rate or selling their personally-owned portfolios to their limited companies.
“We have ensured Keystone has the funding lines in place to provide landlords with the solutions they need and in the four weeks since the vote we have forged ahead with our lending.
“We are increasing traction with brokers and investors. Optimism is the keyword here.”