Landlords find mortgages 'hard to come by'

Posted: 22 Sep 2009 11:43:56 GMT

Of the landlords looking to remortgage or buy a new property in the three months to the end of August, 8.4 per cent said it was more difficult to secure a buy-to-let mortgage than in the previous three months.

Some 2.8 per cent of landlords were more positive, saying that it was easier to find the relevant finance during the more recent quarter-year period.

The findings came from Paragon Mortgages, which concluded that it is becoming increasingly harder for property investment professionals to find mortgages, despite the wider home loan market becoming less constrained.

John Heron, the company's managing director, explained why he thought this was the case.

"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," he commented.

Last month, the Council of Mortgage Lenders revealed that there were 21,600 new buy-to-let loans advanced in the second quarter of 2009.


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