The limited number of home loans currently available on the market is one of the main reasons why private landlords and other property investors are not remortgaging.

At least that is the view of managing director of Paragon Mortgages John Heron, who has claimed that many property professionals are happy to stay with their existing lender in the current economic climate.

Furthermore, the low cost of borrowing is creating attractive reversion rates after introductory deals, which is also contributing to this non-remortgaging attitude.

Mr Heron suggested that this will remain the case for some time yet, despite the council of Mortgage Lenders reporting this month that lending increased ten per cent between the second and third quarter of this year.

Commenting on the wider picture for the buy-to-let market, he added: "We haven't experienced the mass sell-off of buy-to-let property during the recession that some commentators were predicting, but buying activity has been subdued."

Paragon Mortgages' latest Financial Adviser Confidence Tracker Index indicated that a 39 per cent of landlords secured buy-to-let mortgages via an adviser for remortgage purposes during third quarter of 2009.

Written by Claire Doyle
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