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CML statistical information note - buy-to-let, mortgage arrears, and Bradford & Bingley

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Monday, 29, Sep 2008 12:00

The CML believes that the tone of some of today’s coverage could potentially create some misleading impressions about the overall performance of buy-to-let lending. The below statistical summary note outlines the performance of buy-to-let lending as a whole in the context of the overall mortgage market. It also summarises Bradford & Bingley’s most recent trading statement on the performance of its mortgage book, for ease of reference.

We hope you find it helpful.

Today’s coverage so far could leave the impression that the performance of buy-to-let mortgages generally has been far worse than the market as a whole. This is not the case. The statistics below provide a summary of buy-to-let loan performance compared with the total mortgage market (including buy-to-let).

Buy-to-let mortgage market(first half of 2008)Entire mortgage market(first half of 2008)
Number of loans outstanding1,103,00011,741,000
Value of loans outstanding £m132,5001,210,672
Value of gross advances in period £m18,600149,300
Mortgages +3 months in arrears % of all mortgages1.101.33
Mortgages taken into possession in period, % of all loans0.160.16

For ease of reference, Bradford & Bingley statistics taken from its August interim trading statement are given below.

First half of 2008

B&B mortgages +3 months in arrears in organic book, % of all mortgages 1.78%

B&B mortgages +3 months in arrears in acquired book, % of all mortgages 5.11%

B&B mortgages +3 months in arrears across the whole mortgage book, % of all mortgages 2.29%

B&B average loan-to-value on new mortgages in period 77%

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