CML figures show that 0.81% of residential mortgages are currently in arrears of more than three months in the first six months of 2004. This compared against just 0.51% in the buy-to-let market. Residential mortgage arrears in 2002/03 stood at 1.04% compared against just 0.42% buy-to-let mortgage arrears.
David Whittaker, managing director of Mortgages for Business comments, “The continued low levels of mortgages arrears in the buy-to-let mortgage market is a good barometer for the current healthy condition of the marketplace. These positive indicators tied into the fact buy-to-let mortgage lending rose 48% between the back of end to 2002 to 2003, point to the sector remaining a solid investment opportunity. However investors should remember that buy-to-let should be seen as a long term investment and not as a prospect for short term gains.”
