Landlords have lowest debt levels since 2005

Paragon says its research indicates buy-to-let mortgage arrears are likely to remain low despite ongoing problems in the housing and credit markets. Research by the provider, taken from a survey of 200 landlords, reveals the average level of borrowing across their portfolios is 36%, down from 38% at the end of 2007. Paragon also cites recent research from the Council of Mortgage Lenders, which suggests arrears among the buy-to-let market were 0.73% in 2007, lower than the 1.1% average. John Heron, managing director of Paragon Mortgages, believes landlords are cautious investors who take ...