Paragon: Access to mortgage finance 'hampering landlords' purchasing plans'

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Paragon: Access to mortgage finance 'hampering landlords' purchasing plans'

Tue 22nd Jun 2010

Landlords who want to buy an investment property are being hindered by problems accessing mortgage finance.

According to Paragon Mortgages, the number of landlords who intend to purchase a property has almost doubled since the first quarter of the year.

However, a study by the group showed that more than half of those who attempted to secure buy-to-let finance between April and June 2010 found it much more difficult than in the past.

John Heron, managing director of Paragon Mortgages, said this shows there is a "dislocation" between the ability of landlords to buy an investment property and their desire to do so.

"Accessing mortgage finance remains difficult for a large number of landlords," he commented.

Mr Heron added that the existing criteria surrounding most buy-to-let mortgages are aimed at small-scale investors instead of professional landlords.

As a result, he believes the criteria must be changed to allow larger-scale landlords to expand their portfolios.

This comes after Paragon Mortgages revealed that during the first quarter of 2010, the average value of landlords' portfolios rose by more than six per cent.

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