This is despite investors spending 59 per cent of their ongoing costs on meeting mortgage repyayments. The research showed three-quarters (75%) of those polled admitted not prioritising seeking the most suitable financing for their portfolio.
Expenditure on mortgage repayments was by far the biggest ongoing outlay. However, other significant costs included paying for maintenance work to be carried out (13% of overall costs), covering management and letting agency fees (10%) and paying legal and accountancy fees (8%). General property investment-related bills made up the final 10% of ongoing costs.
Mark Sismey-Durrant, chief executive of Heritable Bank, commented: “Property investors often have a real passion for the portfolio of bricks and mortar they have built up, but equally they are in the business to make money. That’s why we were surprised to see such a mismatch between the amount of money spent on meeting their mortgage and the amount of time spent ensuring they have the best, most appropriate financial arrangements in place.
“Settling for poor value, inflexible or inappropriate financing for your portfolio could see your overall returns suffer significantly over time. We would recommend any serious property investor to seek professional financial advice to optimise their financing arrangements.”
