The Financial Adviser Confidence Tracker (FACT) Index found that 30% of landlords obtained a buy-to-let mortgage through a financial adviser for remortgage purposes in the Q4 2009, down from 39% in Q3.

This is the fourth quarterly decrease and the lowest proportion since Q3 2006.

In the current economic environment, there is little incentive for landlords to remortgage. The low base rate means it is financially beneficial for them to remain on their reversionary rates and there continues to be a lack of mortgage products to enable landlords to remortgage.

John Heron, managing director of Paragon Mortgages, said: ‘Buy-to-let remortgaging activity continues to decline and we can see it only going one way until competition starts to increase. At the moment, in the majority of cases the landlord’s reversion rate is typically better than anything they can secure in the mortgage market, so there is little incentive to switch.’

In contrast, the proportion of landlords obtaining buy-to-let mortgages for portfolio extension purposes hit fresh highs in the Q4 2009.

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According to FACT, 52% of landlords obtained a mortgage to extend their portfolio in the final quarter of 2009, up from 48% in the third.