Many buy-to-let landlords in the UK are encountering difficulties in repaying their mortgages.

According to the Council of Mortgage Lenders (CML), rental investors are starting to suffer as a result of wider problems in the British economy.

The organisation said that by the end of September 2008, more than 1.5 per cent of buy-to-let loans were in arrears.

This is up from 1.1 per cent in June, and compares with 1.44 per cent of all mortgages at the moment.

A number of reasons for this trend have been highlighted, such as falling rents and supplies of buy-to-let properties exceeding demand in some areas.

As a result, some landlords have been unable to find tenants or collect enough money to fund their mortgage payments.

Michael Coogan, director general of the CML, commented: "Anyone worried about mortgage payments should contact their lender at the earliest opportunity, before arrears start to build up."

This follows warnings from Standard and Poor's that the continuing slump in house prices could force many landlords into negative equity.

Related posts:

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  2. Dealing With Tenants Who Default On Rent
  3. Landlords optimistic about the future

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