The value of new BTL loans advanced in the UK has dropped by 17.3% in Q1 2024 compared to the same quarter last year, revealed the latest UK Finance data.
In total, there were 41,149 new BTL loans in Q1, worth £7bn — this is also a 16.7% year-on-year decrease by number of mortgages.
The number of BTL fixed-rate outstanding mortgages was 1.38 million, 3% up year-on-year, while the number of variable-rate outstanding loans fell by 14.4% to 596,000.
The average gross BTL rental yield for the UK during the first quarter of 2024 was 6.88%, compared to 6.23% the same period last year.
Meanwhile, the average ICR coverage across the country was 191%, higher than 180% in Q4 2023, but down from 206% a year before.
At the end of Q1 2024 there were 13,570 BTL mortgages in arrears greater than 2.5% of the outstanding balance — this was unchanged from the previous quarter, but 93% higher than in the same quarter a year previously.
There were 600 BTL mortgage possessions taken in Q1 2024, up 39.5 per cent on the same quarter a year previously.
