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According to the ratings agency Standard & Poor's, buy-to-let mortgages are in higher arrears than prime mortgages, and that number is set to increase.

S&P says the sector has been rising on the back of more unaffordable mortgages from 2006 and 2007 – its study says mortgage criteria eased up, and more people got hold of mortgages they may not have been able to afford. Now many landlords are struggling.

The rating agency studied around 200,000 securitised buy-to-let loans, which is approximately one fifth of the buy-to-let market. It found that arrears were 3.7 per cent at the end of June – almost treble the industry average.

S&P estimates that as many as 40 per cent of buy-to-let properties could fall into negative equity by next year. This of course does not affect a landlord’s ability to pay his or her mortgage, but it is a blow to the investment.

This study fails to mention that there are many things that can be done to avoid arrears. Talking to an adviser is the best start – they may be able to help you remortgage, take out a loan or even sell the property if needs be. The main thing is that you do not fall into arrears – which could affect you for years to come.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog