Buy-to-let investors missing out on best loan deals

Investors looking to take advantage of the growing buy-to-let market are missing out on the best methods to finance their purchases, according to research from Heritable Bank.

Coupled with the hike in rates, this means that investors could be needlessly wasting thousands of pounds on interest.

The study shows that investors spend 60 per cent of ongoing costs on mortgage repayments. But only a quarter of the 186 investors surveyed said that they had put finding the most advantageous financing deal at the top of their priorities.

Chief executive of Heritable Bank, Mark Sismey-Durrant, said: “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.”

Other significant costs for investors, according to the study, included paying for maintenance work (13 per cent of overall costs), covering management and letting agency fees (ten per cent) and paying legal and accountancy fees (eight per cent). General property investment-related bills took up the final ten per cent of the ongoing costs.

Tags: agency, time, mismatch, finance, property investment, amount of time, management, money spent on