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The buy-to-let mortgage market has shrunk by 95% in the past two years - making life increasingly difficult for amateur landlords, research has showed.

The number of different mortgages available for rental properties has dived from 4,384 in April 2007 to just 213 now, according to financial website moneysupermarket.com.

At the same time, the rates charged on the loans have failed to fall in line with deals in the mainstream mortgage market.

The average interest rate charged on a buy-to-let mortgage has reduced by only 1.51% since June last year.

This compared with a 2.6% drop in average residential mortgage rates, while the Bank of England base rate has dived from 5% to just 0.5%.

Lenders are also demanding higher deposits from landlords, and there are now no deals left for people looking to borrow 85% of their property's value, with investors instead needing to put down a deposit of at least 25%.

The move to demand a higher deposit, when house prices are falling, means increasing numbers of inexperienced landlords are likely to be unable to remortgage when their current deal comes to an end.

This will leave them with no choice but to stay on their lender's standard variable rate when their current deal ends.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "Because banks view buy-to-let borrowers as riskier than normal customers, the deals that are still available require an extra large deposit.

"Even if you are lucky enough to have a sufficient deposit and have found a suitable buy-to-let mortgage, you must watch out for the fees levied on arranging the deal, as these can be extortionate."

The problems faced by novice landlords have been made worse by a flood of rental properties coming on to the market, after people who were unable to sell their home decided to rent it out.

The big increase in supply has outstripped rises in demand, leading to average rents falling from £873 a year ago to £819 now, the group said.

But despite this, banks have increased the minimum level of rents they require landlords to charge from 112% of their mortgage payment to 123% of it.