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Written by rosalind renshaw

The number of novice buy-to-let investors has fallen to its lowest level, but the number of existing landlords applying for further funding has grown.

Research by Paragon Mortgages among 200 mortgage brokers found that in the third quarter of this year, more landlords sought extra loans to extend their portfolios. This accounted for 30% of buy-to-let mortgage business, while remortgaging accounted for 55%.

First-time landlords accounted for just 10.6% of buy-to-let mortgage business, down from 18.3% the previous year.

John Heron, managing director of Paragon Mortgages, said: “The number of first-time landlords entering the market is at its lowest level, and perhaps that is a good thing in the current economic environment.
 
“Professional landlords represent the core of the buy-to-let market. They are the investors that base their purchase decisions on proven levels of tenant demand for long-term returns rather than speculative investment for a quick profit.”

Comments

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    Many professional landlords are also waiting, expecting prices to fall further. This in itself is driving the market down further.

    • 08 November 2008 02:02 AM
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