THE buy-to-let market has been the housing story of the last five years.

In the first half of this year the number of buy-to-let mortgages approved by lenders reached an all-time high with a staggering £7.7billion of finance agreed.

But despite more and more people choosing to own two or more properties, research just released by one independent investment broker shows that here in the north west it is the professional landlords who still dominate the market.

According to Mortgages For Business, the professionals account for 77 per cent of all buy-to-let properties in this region, compared to 50 per cent nationally. They have an average of 37 properties in their portfolio. In contrast north west `amateurs' have just a couple of houses.

John Kennon, based at Mortgages for Business's Wilmslow office, said: "People are obsessed with the housing market but actually taking the plunge and buying your first investment property is a huge step.

"You have to be confident you have not only the right property but also the right financial package."

He says the big difference between the professionals and the amateurs is the type of mortgage they take out. He said: "Professionals tend to go for interest only, freeing up as much investment capital as possible to reinvest. The amateur tends to opt for a repayment mortgage, viewing their investment more for long term capital growth."

But with an interest rate rise looming does he see an end to the bricks and mortar boom?

"Raising the rates slightly is not going to herald a crash. People view property differently now. They are more financially astute and know that even if it does slow for a time the market will come back."

John Edwards works for Mortgages for Business but also describes himself as an amateur investor with four properties he rents out.

He said: "I have seen pensions being eroded and you have to think ahead. I wanted to invest my money in something you have more control over and I am in it for the long term.

"I do everything myself, get the new tenants, check them out, sort the repairs and collect the rents. It means I maximise my profit and have more control over the properties, a closer link with the people. I have sold a couple and bought again but not often. I tend to keep hold of properties."

Tips for amateur investors:

Location: Is everything, but only buy in an area you know. "You have to be in touch with an area to know which houses are right." said Kennon

Keep Control: If the property needs renovating be careful who you take on to do it. Get fixed prices, fixed time scales and keep tight control over the work.

Finances: Make sure the sums add up, and if don't understand yields and gearing and redemption penalties get free advice from an independent expert. Tweet