Interest only or pay all

j1mb0b

Hi All,

I'm about to get a buy to let mortgage of about £70K on a property worth about £130K. How can I work out whether it would be better off getting an interest only or "pay it all off over 25 years" mortgage?

I'm the sort of person who likes the idea of the 25 years ending and then the house being mine, rather than suddenly being landed with a bill of £70K. Then again, the idea of less payment per month is always attractive!

All advice welcomed. Thanks.

Joe_Bloggs

I did see this which outlines what a buy to let mortgagee can claim from the tax man. Interest paid on a mortgage for the property was on the list. Taxation is an important factor in the success of many enrerprises. It might be wise to seek proffesional advice or study the ins and outs yourself.
J_B.

silvercar

If you intend keeping the proerty forever and a day then a repayment mortgage would mean the rental income (after the mortgage has been paid off) would form a nice contribution to your pension.

If you intend selling in a few years to release the capital gain then an interest only mortgage might be more suitable.