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New figures from IVA.com has revealed a sharp rise in buy-to-let investment casualties looking for serious debt advice as their mortgages get the better of them.

The company reported a 53% leap in distressed buy-to-let investors struggling to pay their creditors. It says typical debts ranged from £163,000 to £201,000 – in all reported cases those saddled with the property debt were middle class professionals owing substantial mortgage arrears.

Terry Balfour director of IVA.com says: “We have seen a near melt down in the buy-to-let market, with a combination of rental arrears caused mainly by tenants losing their jobs, void periods and high fixed rate mortgages causing serious problems. In our experience is that when landlords do get into trouble, the debt levels become very unmanageable."

This is a serious issue – buy-to-let debt infects all the other finances of a landlord. It might mean that they cannot pay their credit card bills, they might miss utility bills and it might get to a point where they are even defaulting on their own residential mortgage.

If you are struggling with your buy-to-let loan you need to take action. Talk to a buy-to-let adviser about managing your finances better, either by taking out a new mortgage, taking out more sensible secured loans or even selling your investment. Whatever the answer, you'll find it with a professional buy-to-let specialist.

SOURCE: IVA.com, 15/03/10

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