Buy To Let Debt Woes For Landlords
Published: 15 March 2010 By MoneyHighStreet Staff Leave a Comment
Buy to let landlords are increasingly facing serious debt problems, according to new research by IVA.com.
The research shows a 53% rise in the number of landlords seeking serious debt advice as rent arrears stretch their finances.
the average debt that landlords face now stands at £50,000, however typical debts range from £163,000 to £201,00 according to the findings.
It appears to be landlords from the professional middle classes who are struggling most with the buy to let related debt problems. Figures from Council of Mortgage Lenders do show, however, that BTL mortgage arrears are down 37 per cent year on year, so many landlords are benefiting from low interest rates, even though rent arrears remain a significant problem.
As Terry Balfour from IVA.com comments: “While it is encouraging to see that the total number of buy-to-let repossessions remain a relatively small percentage of the market, our experience is that when landlords do get into trouble, the debt levels become very unmanageable.”
“Our biggest debt cases are currently solicitors – again, in the buy to let market – which just goes to show that even the professionals can get it seriously wrong” he added.
