Should I chose an interest only or repayment (capital and interest) buy to let mortgage?

This decision will very much come down to the individual’s investment strategy. The repayment route is often suited to investors using property as an alternative pension plan, or looking to build a small property portfolio. With capital and interest repayments, the investor can be sure that at the end of the mortgage term the full loan amount will have been repaid.

The interest only route is often more popular with professional landlords and property investors looking to grow their property portfolio. By choosing this strategy the investor has the cash flow to re gear their property capital allowing them to increase the number of properties in their portfolio. There are also certain tax advantages when taking out an interest only mortgage, however we would recommend you seek professional advice from a qualified accountant regarding this particular incentive.