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Are you looking to increase your buy to let portfolio? If so your first port of call should be a buy to let mortgage expert.

It might sound strange to ask such a question while we are still in the worst recession in 70 years, but landlords are considering investing now – in fact 10% of landlords plan to purchase residential investment property in the first three months of this year, according to Paragon.

They are considering buying now while house prices are still relatively cheap and rates are low. Also, nearly two thirds of those asked about their potential purchases, a third said that they would look to purchase a terraced property – it's cheap and it's perfect for students and young professionals, both of whom can make you some great rental profits.

However, mortgage finance looks set to remain a serious issue for residential property investors in 2010, with mortgage conditions worsening in the final quarter of 2009. Landlords reported to Paragon that it was more difficult to secure mortgage finance during the fourth quarter than in the previous three months. There is no doubt that it is still tough to get additional buy to let credit, but there are new lenders in the market now and if house prices keep rising, more mortgage lenders will want to offer affordable loans to good borrowers.

John Heron, managing director of Paragon Mortgages says: "It is encouraging that landlords are still active in the market and are looking to expand their portfolios. With tenant demand at such strong levels and soft house prices presenting the opportunity for bargains, it is easy to see why. But investors continue to be frustrated by a lack of choice and competition in the buy to let mortgage market."

If you want a new buy to let property, you need a new buy to let mortgage. So speak to your mortgage adviser about your options right away. Rates will soon be rising, as will house prices, so the sweet spot for investors may be now.

SOURCE: Paragon, 19/01/10

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