CHL Mortgages has reported further improvements in arrears levels across its buy-to-let and homeloan mortgage book.
Up until the end of quarter three 2010 there was a 22% year-on year reduction in gross arrears (over 30 days). CHL expects it will have seen a 40% reduction in gross arrears since their peak in February last year, by the end of the year. The lender expects this trend to continue downward throughout 2011.
There has also been an overall improvement in the performance of those accounts where a receiver of rent has been appointed. One in three receivers of rents cases have been repaired Receiver of Rents such as Alder King and Touchstone collect the rental income from properties where the mortgage is in arrears and pay those monies direct to CHL. Where appropriate, performing receiver of rents cases are handed back to the control of the borrower.
CHL anticipates a continuing increase in the number of accounts which might have been deemed ‘delinquent’ now moving to ‘performing’ status. It has also seen a 30% decrease in impairment charges and anticipates a similar decrease over the next 12 months.
Bob Young, , managing director at CHL Mortgages, said: “The improvement we have seen in terms of arrears and the performance of our receiver of rents cases is ongoing proof that our comprehensive mortgage account management strategy continues to be successful. Much of this improvement is down to the experience and quality of our in-house collection team and those who work in the field we also have two rental teams at head office working with our off-site team and our borrowers to ensure everyone’s interests are aligned.