Buy-To-Let: Interest only or repayment?

dt_matthews

I am about to buy my first (and only I think!) BTL property. I was going to go for a repayment mortgage but someone suggested i might want to think about an interest only suggesting that I could offset the rental income against any repayments for interest but not for capital repayment...

Is this correct and if so I am unsure of teh economics - I am buying the property as a long-term investment (i.e. to own the property) rather than expecting to make money on the rental... also, if i did do the interest only for tax reasons, is the difference in monthly premiums likely to give me a chance to invest in something else so that I can actually pay off the mortgage at the end of its term?

apologies if this seems like an inane ramble thru my fuzzy brain ;-)

dan