Paragon reports fall in buy-to-let mortgage arrears
New figures from Paragon suggest that owners of buy-to-let properties could be finding it easier to keep up with mortgage repayments.
According to the buy-to-let mortgage specialist's financial results for the six months to the end of March, the arrears rate across its portfolio has fallen to 0.75 per cent, including receiver of rent cases.
John Heron, director of mortgages at Paragon, commented: "The performance of the buy-to-let portfolio continues to be exemplary, with strong customer retention and low arrears levels combining to deliver excellent revenues and profits for the period.
"Arrears across Paragon's £8.2 billion of buy-to-let loan assets continues to fall and at 0.75 per cent, including receiver of rent cases, is outperforming both market peers and the wider mortgage sector."
It is the latest sign of improvements in the buy-to-let mortgage market, with recent figures from the Council of Mortgage Lenders revealing that lending in the first three months of 2011 totalled £2.9 billion across 27,600 loans, up from £2.1 billion lent across 22,000 loans in the first quarter of last year.
Meanwhile, the arrears rate fell significantly to narrow the gap with the owner-occupier sector, the organisation said.
Furthermore, research from Moneyfacts.co.uk has revealed that the choice of buy-to-let mortgage products on the market has significantly increased in recent months.
There are now 463 different mortgage products available, up from 312 six months ago, the financial advice website said.
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