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Last week, the Council of Mortgage Lenders said that 1.58% of buy to let loans, were in arrears at the end of September, up from 1.1% just three months before.

But that does not have to mean that buy to let landlords have to fear repossession – if you are in financial difficulty there are options for those with rental accommodation.

According to Ministry of Justice data, courts made 16,851 orders to repossess property from landlords in the three months to September – this number may have been smaller if the landlord used a receiver of rent.

A receiver of rent is an independent, court appointed representative you call on who comes in to manage your property. Because you have paying tenants in the home, there is still the potential to have income and to pay your mortgage. The receiver takes all the money and makes sure the mortgage is met.

In 2007, the Council of Mortgage Lenders also proved that a receiver of rent could lower the odds of the property ending up repossessed – something the landlord and the mortgage lender would always choose.

This means your property remains safe in the short-term, and also your tenant stays in their home. Arrears can be tough to handle, but taking decisive action as soon as problems arise could maybe help save your investment and will definitely avoid leaving innocent people out in the cold.

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

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The number of new rentals beginning in October was more than 50% higher than the same time last year.

According to data from lettings agent Your Move, thanks to the stalling residential mortgage market more and more buy to let accommodation is in ever-more demand.

David Newnes, managing director of Your Move, says: “Rental demand overall this year has been extraordinary. This is the busiest we’ve ever been in lettings. The screws are tight in the mortgage market. We’re convinced the boom in demand for rented homes is a direct result of the lack of mortgage finance available.

“Those who would normally buy are renewing their leases and staying put in rented accommodation until the market stabilises.”

This means it’s great time to invest in buy to let. The residential mortgage sector seems to be in deep-freeze for the medium term, so the Your Move figures are only going to rise.

It also means that if you are going to invest in buy to let, you are going to have some competition. This means making sure your mortgage is as good as it can be to maximise profits and make the most of whatever rent you can get.

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

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Lenders took possession of 11,300 homes in the third quarter, up from 10,100 in the second despite government efforts to make home repossessions a last resort, the Council of Mortgage lenders said on Friday.

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The National Association of Estate Agents has used the latest consumer confidence index as proof that more needs to be done to regulate ‘rogue’ estate agents.

According to the latest Consumer Confidence Index, the private sector renting, estate agents and house purchasing services all failed to achieve a CCI score of more than 63 out of 100.

According to the department for Business Enterprise Regulatory Reform, this score was a poor one – the renting and estate agency sector scored ‘low’ ion almost all parts of the survey.

Peter Bolton King, chief executive of the NAEA, says: "The BERR survey merely confirms what the NAEA has been saying for years - that a system to prove minimum competency standards should be introduced in an industry which up until now has been essentially uncontrolled.

"NAEA members sign up to our Rules of Conduct - but there is nothing to stop any Tom, Dick or Harry setting up shop on the High Street and handling the hard earned cash of Britain's families. This applies not only to the housing market, but also the private rented sector.

"Enough is enough. Now is the time for the Government to show that they are listening and to create a system that can protect responsible and trustworthy estate agents and rid the profession of cowboys."

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

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The glut of new ‘accidental landlords’ is bringing down rents across the UK, according to a new survey.

The Royal Institute of Chartered Surveyors says rent fell for the first time in five years across the UK, as the numbers of empty properties boomed thanks to an oversupply of rentable properties.

RICS says this is down to ‘accidental landlords’ - people who are becoming landlords in lieu of selling their property. Some will prefer to rent out the space instead of losing out in a dropping market - others are simply unable to sell.

Surveyors says London has seen the biggest drop in rent as unemployment and the threat of unemployment takes hold in the South East - 33 per cent of London surveyors found rents to be falling. More people are unwilling, or unable to move in the Capital, so are renting out the home.

The National Landlords Association says these people are bringing down the sector - many have not informed their lender that they are buy-to-let, not residential properties. Also, many have not adhered to rigorous administrative and health and safety rulings.

This may be the case, but this new phenomenon doesn’t need to be a threat. If you make sure your property is well-placed and well-maintained it is always going to stay ahead of the pack.

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

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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

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Rod Kent, former chairman of nationalised bank Bradford & Bingley, said the B&B board was "massively sorry" for the bank's collapse in September.

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Landlords are having to reconsider the size and breadth of their portfolios as more mortgage loan to values become harder to attain.

News from the BBC has found that less than 100 mortgages remain that are available for those that have 10% or less of the property’s worth available to spend. That means deals that allowed landlords to increase their portfolios quickly with high LTVs are over.

And that’s tough for those looking to cash in on the house price slump – great deals are to be had and people are begging for property to rent. But they cannot get off the starting blocks thanks to buy to let mortgage lenders demanding 15% or 25% of the property’s worth.

There are options though – buy to let landlords can use secured loans to find quick sources of revenue. They can use bridging loans or they can even use their equity to help extend properties, not buy more.

Right now landlords are in a great position, but one that cannot be taken advantage of by spending more and more. Currently prudence is key – take advantage of what you already have as a buy to let investor and get through the tough times.

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

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How do you know when borrowing against rental property for home mortgage is a sensible move? The practice has been around for some time. Let to buy allows people to rent out their existing property and buy a new one to move to and it can be an appealing option if you don't want to or can't get rid of your existing home. Think of the positives – you will be able to sell your old home to tenants like no-one else, as you will know all the advantages. And you are likely to be able to get a large loan as you will have some equity in the property.

Learn more about Borrowing Against a Rental Property For A Home Mortgage

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Chancellor Alistair Darling has told banking chiefs to pass on the interest rate cut to customers "as quickly as possible".

Brown Tells Banks: 'Pass On Cut'
Prime Minister Gordon Brown has joined the Chancellor in urging Britain's banks to pass on the 1.5% interest rate cut to customers in full.