Buy-to-let borrowers are around 25% less likely to require a mortgage payment holiday than residential borrowers, new research shows.
Foundation Home Loans analysed its own lending book, featuring around 30,000 borrowers, and found that its buy-to-let borrowers were significantly less likely to have asked for, or taken, a mortgage payment deferral since the government initially announced the availability of payment holidays for borrowers back in March.
Various mortgage experts have repeatedly warned BTL landlords not to use mortgage payment holidays unless absolutely necessary, and it would appear that message has been well received.
Foundation’s buy-to-let borrowers were around 25% less likely to require a mortgage payment deferral than residential borrowers.
Hans Geberbauer, CEO of Foundation Home Loans, said: “When the initial government announcement was made about the availability of payment deferrals, there was considerable concern that landlords would request mortgage deferrals indiscriminately and potentially with a view to funding new investments, rather than using it to help tenants.”
Geberbauer added: “While most lenders have experienced some egregious cases of misuse, our analysis shows that landlords should be widely commended for having taken both a considered and responsible approach to this issue over the past few months.
“We know that landlords have been helping tenants wherever possible, while using mortgage payment deferrals only where necessary. Guidance from mortgage advisers and industry bodies like the National Residential Landlords Association was instrumental in ensuring the overwhelmingly responsible use of mortgage payment deferrals by landlords.”
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