CHL Mortgages has reported continuing improvements to its arrears levels on its buy-to-let portfolio.
Figures for the final quarter of 2010 show that 2.03% of all CHL’s buy-to-let mortgage accounts were over three months in arrears. This compares with CML industry figures showing a comparable figure of 2.62%, a difference of 59 basis points (bps).
In every quarter of 2010 CHL’s arrear levels outperformed the industry average by over 50 bps.
For the CML’s preferred measurement – looking at arrears over 1.5% of the outstanding balance – CHL shows only 0.31% are in arrears compared to the CML industry figure of 1.51%.
As at the end of December 2010 CHL’s gross arrears levels are now 42% down since their peak back in February 2009, exceeding expectations for the past year. CHL expects the downward trend to continue throughout 2011.
CHL reports that there has also been a continuation in the overall improvement in accounts where a receiver of rent has been appointed. These properties are now achieving, on average, 155% rental cover and of the total number of properties available to let, 92% are let at this time. This has improved from a figure of 36% 18 months ago.
The receiver of rent manages the property on behalf of the borrower. CHL works with two such companies, Alder King and Touchstone, who collect the rental income from properties where the mortgage is in arrears – the money is then paid direct to CHL.
Bob Young , CHL Mortgages’ managing director, said: “I am frankly blown away by the results the team at CHL have achieved. As our figures show
