Buy to let remortgaging down but more people becoming landlords

11 June 2010

Written by Michael Aglony

Lender Paragon has reported that the proportion of home loan business going toward buy to let remortgages has fallen to its lowest level for five years, while the proportion of first-time landlords looking for finance to purchase houses had grown for the second quarter in a row.

Surveying a panel of mortgage brokers for its Financial Adviser Confidence Tracking Index, the provider found that remortgaging has declined from 30 per cent in the final quarter of 2009 to 28 per cent of business in the first three months of this year - the fifth consecutive quarter of falls in this type of lending.

Meanwhile, first-time landlords accounted for 21 per cent of borrowing, but those more experienced in the private rental sector were not adding to their portfolios as much, with 45 per cent buying new property in the first quarter of 2010 compared to 52 per cent in the final three months of last year.

John Heron, managing director at the firm, said: "It is positive that first-time landlords are coming back into the market, however ... It is important that lenders encourage landlords who take a long-term approach to their investment, rather than speculators."

Nigel Ellis, director of Prickett & Ellis, recently commented that people with property in London are investing in a very safe haven.

Why not take a look at our best Buy to Let Mortgages and make an enquiry online now.