BTL lending slumps to 2003 levels

According to CML statistics, there were 37,000 new loans in Q4 worth £3.9bn, 12% down on Q3 and 56% down on the same period in 2007. It says outstanding BTL mortgages represented around 10% of all loans, and around 11% of the value of all lending, at the end of 2008. Additionally, arrears rates on BTL mortgages at the end of 2008 hit 2.32%, significantly higher than the comparable rate for the wider market of 1.88%. The CML says fraud may be one of a number of factors influencing the arrears rate, with over-valuations to achieve a larger loan than the sale price of the property a comm...