A Sharp Rise in Buy-to-let Mortgages Accounts

The nationalized bank Bradford & Bingley started the securitization to low down the debts on buy-to-let mortgages. However during the first quarter of 2009 a sharp rise in arrears was observed instead.
This fact attracted attention of specialists, and after some kind of research of all the leading UK buy-to-let securitizations it was found that loans 90 days or more in arrears have skyrocketed to 3.55 per cent in the first quarter of 2009 in comparison with 0.92 per cent in the first quarter of 2008.
The most dramatic increase of arrears was marked at Aire Valley Master Trust, belonging to Bradford & Bingley. The number of arrears of more than 90 days leaped from 3.44 per cent in the fourth quarter of 2008 to 4.9 per cent in the first quarter of 2009. Furthermore, the data proves that in the first quarter of 2008 serious arrears at Aire Valley came to just 1.33 per cent.
The Council of Mortgage Lenders released the data which demonstrates that three-month arrears rate is estimated at 2.32 per cent in the buy-to-let market whereas the arrears rate for the whole market was at 1.88 per cent at the end of 2008.
As a result, many buy-to-let sector properties were repossessed. The number of repossessions in the in the first quarter of 2009 grew up to 0.18 per cent compared to 0.13 per cent a year earlier.