Buy-to-let delinquencies decline

The number of delinquencies on buy-to-let mortgages in the UK dropped in the second quarter of 2009, new data has shown.

Research from Standard & Poor's (S&P) has found that the amount of delinquencies in the sector declined for the first time in two years.

The fall in interest rates contributed to this, according to S&P analysts Kate Livesey and Andrew South.

They stated: "UK house prices may be stabilizing, with seasonally-adjusted month-on-month data recently beginning to show price increases.

"However, we estimate that the number of borrowers in negative equity would rise significantly even for comparatively small further falls in house prices."

The average total delinquencies for prime residential buy-to-let mortgage bonds in Britain dropped to 6.1 per cent, a 0.1 percentage point decrease from the previous quarter.

Repossessions in the UK have also decreased recently, with the Council of Mortgages Lenders indicating that 11,400 homes were repossessed in the three months to June, a drop from 12,700 in the first three months of 2009.

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