Landlords with mortgage debts soar by a third

THE number of mortgages in arrears has shot up, according to a trade body for lenders.

- Vicky Shaw

Landlords may not be in a position where they can charge rents that will cover their buyto-let mortgages, UK Finance suggested.

Some 87,930 homeowner mortgages were in arrears in the third quarter of 2023, 7% more than the previous quarter. The number of buy-to-let (BTL) mortgages in arrears was 11,540, a 29% increase during the same period.

UK Finance's report said: "The increases in arrears are driven by the combined impact of both cost-of-living pressures and higher interest rates.

"In particular, interest rate pressures are felt more acutely in the BTL sector, where landlords may not be able to raise rents to cover the increases in their payments." It said mortgage arrears were still running at less than half the levels seen in 2009.