CHL Mortgages has reported a continuing fall in arrear levels for its buy-to-let mortgage book.

As of the end of October 2012, out of 42,000 live mortgage accounts, only 572 (1.36%) were in three-month arrears while those accounts one month in arrears dropped below 900 to 896 (2.13%) for the first time since mid-October 2008.

Over the month this meant a fall of 121 in total accounts in arrears.

The specialist lender’s arrears levels are now at a four and a half year low.

In addition, last month CHL’s asset management function saw the highest monthly rent receipt for all those properties now managed by a Receiver of Rent (RoR). The overall position of those properties with an RoR continued to improve – of those properties that can be rented out 95% have tenant occupancy.

Rental income percentage levels for those properties now stands at 165%, which CHL says is “a significant increase” given the vast majority of the loans originated were underwritten at 125%.

Meanwhile, a number of distressed properties which were recently sold at two auctions bettered their reserves by a considerable margin, CHL said. An auction in the North saw the six properties average 168% of the reserve price, while 12 properties in the South fetched, on average, 128% of the reserve.

“Even by our own recent standards October has been a particularly positive month for arrears levels on our book with a number of benchmarks beaten,” said Bob Young (pictured), managing director at CHL Mortgages.

“The fact we now have a mortgage book which has reached a four and a half year low in terms of arrears is very pleasing as is the fact we have consistently beaten those best case scenario forecasts we made at the start of the year. On our one-month arrear levels we have broken through the 1,000 and 900 barrier during the year and, looking ahead, we believe we may just reach the low 800s before the end of 2012.

“Other indicators of the quality of the book are also abundant with examples such as our ability to bring in the highest monthly rent receipt ever during October being one of the stand-out highlights. We have also benefited from a continually improved timescale when it comes to the turnaround of maintenance and lettings work, even though we have set those working in these departments particularly stretching targets. These are consistently hit and often beaten, and this is testament to the hard work and dedication that all CHL members of staff active in this area are putting in.”

Young added: “The challenge now of course is not to rest on our laurels but to continually improve on our figures. We know there is still room for improvement and all members of the CHL management team and those who work across the business are committed to ensuring that our numbers continue to go in the right direction.”