Credit, Collections & Insolvency News
UK Finance’s latest buy-to-let mortgage market Update for Q1 2026 showed that there were 58,272 new buy-to-let loans advanced in the UK, worth £10.8 billion. This was up 3.26 per cent by number compared with the same quarter in the previous year, 7.02 per cent by value.
The average gross buy-to-let rental yield for the UK in Q1 2026 was 7.21 per cent, compared with 6.93 per cent in the same quarter a year previously.
The number of BTL fixed rate mortgages outstanding in Q1 2026 was 1.47 million, 1.4 per cent up on a year previously. In contrast, the number of variable rate loans outstanding fell by a further 9.5 per cent to 453,000. The average interest rate across all new buy-to-let loans in the UK was 4.71 per cent in Q1 2026. This was 6 basis points lower than in the previous quarter and 29 basis points lower than in the same quarter of 2025.
Reflecting the downwards movement in interest rates, the average buy-to-let interest cover ratio (ICR) for the UK in Q1 2026 was 221 per cent, up from 204 per cent in Q1 2025 and 218 per cent in the previous quarter.
At the end of Q1 2026, there were 8,960 buy-to-let mortgages in arrears greater than 2.5 per cent of the outstanding balance. This was down 560 from the previous quarter. There were 810 buy-to-let mortgage possessions taken in Q1 2026, unchanged from the same quarter a year previously.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, said “Although buy-to-let lending moderated from the stronger levels seen at the end of 2025, activity in the first quarter remained ahead of the same period last year, indicating that the market continues to move in the right direction where conditions are supportive.
“Remortgaging remained a significant driver of lending and was higher than a year earlier. This points to landlords actively refinancing as they respond to broader affordability considerations and manage their portfolios, including supporting longer-term plans such as expansion and investment in existing properties.
“The value of outstanding balances also rose above £313 billion, underlining the resilience of the sector and its continuing role in supporting investment in privately rented homes.
Latest data from the Bank of England has shown that mortgage approvals fell sharply in May 2026, reaching their lowest level in two and a half years. The data also showed a 14.9% decline, with approvals dropping to 56,205 from 66,034 in April. Net borrowing of consumer credit by individuals remained largely unchanged when compared…
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Young people born from the mid-1990s onwards are enjoying higher living standards than their millennial predecessors so far in their careers, in part by becoming the stay-at-home generation, according to new Resolution Foundation research. The report finds that Gen Z has become the stay-at-home generation, with almost two-thirds (63 per cent) of young adults aged…
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The Financial Conduct Authority (FCA) has outlined plans to widen access to mortgages for groups including first-time buyers, older borrowers and self-employed people. Proposals include expanding access to interest-only and part interest-only loans, easing later-life borrowing rules and encouraging lenders to assess applicants based on their current financial circumstances rather than relying heavily on past…
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Latest Bank of England data has shown that mortgage approvals reached a 15-month high of 65,900 in April, a 3% increase from March. Net borrowing of mortgage debt by individuals fell to £4.4 billion in April, from £6.8 billion in March, below the previous 6-month average of £5.1 billion. Approvals for remortgaging were broadly unchanged…
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Average mainstream house prices are expected to fall by 2% in 2026, as higher mortgage rates reduce demand, according to property firm Savills’ revised mainstream housing forecast. The report, however, states that there remains good capacity for house price growth in the medium term, as economic prospects are expected to improve and the market becomes…
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