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Need for landlords' insurance highlighted by 'hard core of borrowers'
16 Aug 2010
Buy to let property insurance customers have been told that there is currently a "hard core of borrowers" in mortgage arrears, which could suggest that tenants will also be falling behind with their rent payments.
Research by the Council of Mortgage Lenders revealed recently that the number of properties taken into possession by first-charge mortgage lenders had continued its fall in the second quarter of 2010.
Tom Entwistle, director of LandlordZONE.co.uk, said that, "whilst it appears there are improvements in the arrears situation for many borrowers", there remains a "hard core" of borrowers in arrears, with little hope of improvement soon.
If those in rented housing are experiencing similar financial woes, these figures could highlight the need for buy to let property insurance cover with a rent guarantee option to protect landlords from tenants falling behind with payments.
Mr Entwistle added: "All the indications are that arrears can be contained at roughly the present levels, but certainly there will be no dramatic improvements and there is always the prospect of the situation worsening in this short-term."
Posted by Dan Winters
