Lendy is urging buy-to-let property investors to diversify despite the value of residential mortgage write-offs hitting record lows.
The value of mortgages written off by banks and building societies in the last year hit a 12-year low at £72m, Bank of England data shows, but the peer-to-peer property platform is warning that rising interest rates could make it harder for borrowers to keep up with repayments in the future.
Liam Brooke, co-founder of Lendy, warned property investors must be careful about the level of exposure they take on in case of a downturn in the property market.
“Low interest rates have meant that bad debt in the residential market is close to all-time lows,” he said.
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