According to Paragon Mortgages, prime buy-to-let mortgages now make up 21% of financial advisers’ business, which is nearly double the 11% of the mortgage market that the Council of Mortgage Lenders’ 2006 figures showed.

Paragon Mortgages’ research shows that, despite two rate rises since the beginning of the year, Q1 2007 has seen continued growth in the buy-to-let market. Behind prime residential mortgages, prime buy-to-let is now the largest generator of business for intermediaries, making up a greater proportion of the market than all other niche sectors, even self-cert or sub prime residential.

“Buy-to-let is the biggest niche sector in the UK mortgage market, and our research shows that it is continuing to grow. As the sector expands, those financial advisors that have expertise in the area are, in turn, benefiting from its success”, said John Heron, managing director for Paragon Mortgages.