Buy-to-let mortgage repossessions are up by 11% year-on-year, data from UK Finance shows.
Some 790 buy-to-let mortgaged properties were repossessed in the second quarter, which is at least 2% fewer than in the first quarter.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, called the data a “stark warning to landlords”.
She added: “Over the years landlords have been facing hits from all sides, so it is worrying to see a growing number of borrowers can no longer keep up with mortgage repayments and are having properties repossessed.
“Those landlords with a portfolio may have to sell up in the coming months if they are finding their margins squeezed.
“Investors typically expect to make better profits if investing in multiple properties, but by the same notion, it can open them to more risk if property prices plummet and they are locked into a mortgage or have no tenant for an extended period of time.”
Some 11,270 buy-to-let mortgages are in arrears, an improvement of 5% compared to the previous quarter.