Buy to let mortgage availability discussed

22 September 2009

Written by Gavin Elley

Some 2.8 per cent of landlords said they found it easier to secure buy to let mortgages in the three months to the end of August, while there were 8.4 per cent of these property professionals who found it more difficult to find such finance.

These are the findings of the most recent research by Paragon Mortgages, which suggested that it is becoming increasingly tougher for existing landlords to remortgage or get loans for new property purchases.

So, as the wider mortgage market appears to be recovering, the company claims that the buy to let sector is still affected by the economic turmoil in the UK.

This comes despite the Council of Mortgage Lenders indicating that this area of the property market showed signs of stabilising in the second quarter of 2009 with just a four per cent reduction in the number of buy to let mortgages advanced compared to the previous three months.

John Heron, managing director at Paragon Mortgages, said: "Mainstream lenders are reducing their focus on [the buy to let] sector and specialist lenders are still unable to access the wholesale funding markets to enable them to offer new products."

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