Two-year low for buy-to-let remortgage market

The number of landlords who are remortgaging their investment properties has fallen to its lowest level in more than two years, new research has shown.

A panel-based survey of brokers by Paragon Mortgages revealed that 39 per cent of landlords took out buy-to-let mortgages for remortgage purposes in the third quarter of this year.

This is the lowest level recorded since the first the first three months of 2007.

At the same time the survey found that 48 per cent of landlords had obtained a mortgage in order to extend their portfolio.

The firm said this figure represented a "rapid recovery" from the final quarter of 2008, when just 31 per cent of landlords took out mortgages for additional properties.

John Heron, Paragon Mortgages' managing director, said: "Landlords are happy to stay with their existing lender and we think this will remain the case for the foreseeable future.

"It is encouraging that landlords are now adding to their portfolios. As house prices have stabilised, landlords now obviously believe that it is a good time to start expanding before house price inflation picks up again."

Mr Heron warned that despite the figures it was "too early" to think of the property sector recovering because investors are suffering from a "severe lack" of competition in the mortgage market.

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