The latest figures show a tiny increase in the number of landlords falling behind on their mortgage payments, but experts reckon it’s nothing to worry about. So is now a good time to grab a bargain? Read on…

The number of buy-to-let (BTL) mortgages in arrears edged up by just over 0.5% in the second quarter of 2024, reaching 13,570, according to UK Finance.

Before you panic, that’s still way below the scary figures we saw in the credit crunch of 2008. And the total number of landlord properties being repossessed is still very low – just 1,690 in the last quarter.

Homeowners and Landlords Are Mostly Keeping Up With Payments

The proportion of ALL mortgages in arrears is still low – just 1.1% for homeowners and even less (0.69%) for BTL mortgages.

The number of homeowners in arrears actually fell slightly, by 0.5%, to 96,070 in the last quarter.

Experts Say This Is Just ‘Normalisation’ After a Crazy Year

Russell Anderson, at Paragon Bank, reckons the figures are good news for landlords.

He says: “UK Finance’s buy-to-let update is positive and acts as evidence of the market continuing to normalise following the challenging economic and political conditions experienced last year.”

Landlords Are Snapping Up Properties Again

The figures show that landlords are regaining confidence, with £6.2 billion worth of remortgages being approved in the second quarter of 2024 – the highest level since 2022.

And more landlords are adding to their portfolios, with £2.4 billion worth of new purchases in the same period.

Is Now The Time To Expand Your Portfolio?

With the BTL mortgage market bouncing back and arrears still low, it could be a good time to snap up a bargain. But remember to do your research and seek professional advice before taking the plunge.