A company called IVA who, not surprisingly, are a debt consultation firm have this week released a statement saying that their figures show that more British landlords than ever are finding it very difficult to keep up with their buy to let loan payments.
They say that they base this conclusion on the large rise in the number of landlord’s who are seeking professional advice regarding how to handle their debt. Their figures show that this has risen by 53%. The average landlord seeking this type of advice is between £163, 000 and 201,000 in debt and is typically several months behind in repayments.
The records kept by IVA indicate that a lot of these landlords have struggled to meet their commitments for quite some time and are now really starting to lose the battle.
The reasons for the difficulty have been well documented on this blog
• High interest rate buy to let loans
• Defaulting tenants
• Periods of vacancy
It is sad to see that so many landlords are turning to this kind of solution though it was probably inevitable. We can only hope that this period of improvement is reflected in the very soon and some of these landlords get back on track.
