29 Sep

Buy-to-let not so bad, says CML

Buy-to-let not so bad, says CML

The Council of Mortgage Lenders (CML) has stated that the performance of the UK buy-to-let industry remains strong and insisted that this remains the case despite the nationalisation of buy-to-let mortgages provider Bradford & Bingley.

A CML statement today said that press coverage of the bank's problems had given the impression that buy-to-let was in a worse state that the overall UK mortgage market.

"That is not the case," the body insisted, providing comparative statistics to back its argument.

These showed that across the whole market, 1.1 per cent of buy-to-let mortgages were in arrears of three months or more over the first half of 2008, compared with 1.33 per cent of residential mortgages, while the repossession rate was identical for both at 0.16 per cent.

Earlier today, shadow chancellor George Osborne told GMTV he believed that instead of being nationalised, struggling banks like Bradford & Bingley should be taken over by the Bank of England and run down under a "special resolution regime" in order to avoid taxpayers having to foot the bill.

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