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Over half of professional landlords attempted to search for a buy-to-let mortgage in the last three months, but almost all of them found that buy to let mortgage funding is constrained, proving how important a buy-to-let professional adviser is to landlords.

According to Paragon Mortgages, despite an increase in the availability of credit in the wider mortgage market, it is becoming even harder to source buy-to-let mortgage finance – it says over half of professional landlords have attempted to obtain a buy-to-let mortgage in the three months to the end of August for either remortgage or new purchase purposes.

Of those landlords, nearly nine out of 10 said that it was more difficult to secure a buy-to-let mortgage than in the previous three months.This is not surprising – there were 196 live buy-to-let products available at the end of August 2009, a 94.4% reduction on August 2007's numbers.

John Heron, managing director of Paragon Mortgages says: "Product availability in the general mortgage market has improved slightly in recent months, but has worsened for the buy-to-let market.

"We know that there is demand from investors to purchase new property, particularly with returns from savings products being so low, but they are being frustrated by a lack of mortgage supply. Buy-to-let lending has slumped and there is a real danger that the private rented sector could start to contract, particularly if the ‘accidental landlord’ begins to sell property. This would be disastrous for those sectors of the population that rely on the private rented sector for their housing needs."

The only person who can help you navigate the lean buy-to-let mortgage maze is a buy-to-let professional adviser. They will be able to pair you with the right mortgage that will work with your situation. Funding is tight right now, but there are still 196 mortgages out there that can work with your property investment and make the most of your rental profits.

SOURCE: Paragon Mortgages, 21/09/09

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