What to do if you are having payment problems
After the credit crunch hit at the end of 2007, the number of people struggling to make their mortgage repayments increased substantially, on both their residential and buy-to-let properties.
Continued low interest rates have helped to contain the problem, and the incidence of repossessions arising from arrears has not been as severe as it might have been.
However, thousands of landlords have been affected. In the residential mortgage market, the government has insisted that lenders exercise ‘forbearance’, and only repossess property as a last resort.
In the buy-to-let sector, however, no such requirement has been imposed, and the journey from struggle to missed payment to losing your property can be far more swift.
The good news is that mortgage lenders such as Bradford & Bingley have no desire to repossess your property if they can possibly avoid it, and they have set up teams of staff with the specific aim of helping you to address any financial difficulty you may face regarding your mortgage repayments.
If you are struggling to afford your buy-to-let mortgage repayments, whether because your tenants have fallen into arrears, your property is not let, you have lost your job or a host of other reasons, the golden rule is to let your lender know as soon as possible. They are ready and willing to listen to your problems, and will try to help you find a workable solution if possible.