For the first time in Q1 of 2010 there has been an increase in the number of landlords in the buy-to-let market.

In the face of a falling mortgage sector, it isn’t a far leap to imagine that the buy to let mortgage market is falling also. However new research from Paragon Mortgages found that the percentage of first time buy-to-let investors taking out a buy-to-let loan actually increased to 21% whereas in December they made up only 16% of new buy-to-let loans.

On the other hand, remortgages amongst the buy to let community have fallen by 2%, from 30% at the end of 2009 to 28% in Q1 of 2010.

A Paragon spokesman said, “The rise in first-time landlords represents a proportion of new business and reflects a reduction in buy-to-let remortgaging.”

Geoff Laird principal of Buy to Let Funding Services said, “With buy-to-let tracker rates carrying premiums of up to 4.75% above the Bank of England base rate any dramatic rate rise could be a disaster for virgin investors”.

“I question whether this is the right time to encourage first-time landlords. Without professional advice they could become a new batch of lambs to the slaughter.”

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