BTL Market Update: Landlords Facing Mortgage Arrears

  • Sharp Rise: Over 41,000 landlords fell behind on mortgage payments in 2023, a 93% increase compared to the previous year.
  • Quarterly Growth: Arrears consistently rose throughout 2023, with the final quarter reaching 13,570, impacting 0.7% of all BTL loans.
  • Possible Causes: Rising interest rates, the highest since 2008, are seen as a contributing factor.
  • Market Concerns: Increased BTL arrears could limit rental property availability as landlords struggle financially.

SOURCE: Research by specialist lender Octane Capital, using data sourced by UK Finance and the Bank of England