New research from the National Landlords Association has revealed mortgage repayments are the largest outgoings for the majority of landlords.
Data from the NLA report shows that nearly two-thirds of landlords have buy-to-let borrowing as part of their lettings make-up. Those with a BTL mortgage spend 28% of their rental income on keeping up to date with repayments.
In addition, landlord respondents to the survey revealed that they spent an average of 11% on maintenance and 6% each on agent’s fees, insurance and furnishings.
Responding to the outcomes of the survey, NLA Chairman Carolyn Uphill said the figures, ‘show how significant a business cost mortgage repayments present for the average landlord and demonstrate why the Chancellor’s Budget will be such a blow for many.’
Landlords spend over a quarter of income on mortgage repayments
Continuing, Uphill commented, ‘with the average rental yield at its lowest level for five years-at 5.7%-landlords need to plan their finances carefully to ensure they do not end up running at a loss.’
‘Landlords can get help and support from us, the largest landlord association, for instance we offer services such as NLA Rent Manager, an online software solution, which can help landlords better manage their finances by organising and tracking important aspects of a rental business,’ she concluded.