Private landlords have been encountering problems when trying to secure buy-to-let mortgages, new research shows.

According to Paragon Mortgages, 8.4 per cent of landlords found it trickier to get the relevant home loan finance in the three months to the end of August, compared to the previous quarter-year period.

On the other hand, 2.8 per cent of private landlords said they found it easier to secure a buy-to-let mortgage throughout June, July and August.

John Heron, managing director at Paragon Mortgages, said that landlords are generally finding it more difficult to remortgage or find the finance for a new property purchase at the same time the wider mortgage market is opening up.

"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 remarked.

Council of Mortgage Lenders' figures - published last month - show that there were 21,600 new buy-to-let loans advanced in the second quarter of 2009, which was four per cent down on the opening three months of the year.

Written by Claire Doyle
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