Lenders set to be landlords to curb repos
Director of business development Richard Sexton says a number of lenders are close to launching such a proposal particularly, but not exclusively, with buy-to-let mortgages.
Sexton says: "A number of lenders are considering creating extra company vehicles which will purchase repossessed stock and manage them as rental portfolios until such time as the market allows for a disposal at a better price and offering finance against repossession stock to improve marketability.
"Lenders are clearly looking for innovative solutions to repossession numbers and for BTL properties in particular they will act as receivers of rent and consider extending tenancies rather than simply exiting tenants and selling property into what may be a poor market."
A Council of Mortgage Lenders spokeswoman says: "Buy-to-let lenders say if there is a good tenant and good cashflow, they are looking to extend the lease when normally they may look to repossess. The idea of a vehicle to manage this is entirely in line with moves in the homeowner market and what we have recommended - a broad, legitimate sale and leaseback scheme."