BTL - mortgage or loan?

costingbunny_2

Still looking for advice on buying a BTL. On this example how would you approach it. I don't need the rent as income
Purchase price £50,000
Maximum deposit £25,000

I'm considering a7 yr repayment mortgage as this would be paid off then for retirement and the rent would cover the mortgage payments.
Can't see any benefit from an IO mortgage in the circus?

Would a,bank loan such a small amount via a mortgage?

Any advice welcome

ACG

Loan amount should be fine, purchase price you will find your options are limited.
You could potentially go down the secured/unsecured route in terms of loans if you wanted.

Interest only - you can declare the interest as an expense and therefore reduce your tax bill. If you have it on repayment, the amount you can offset against your tax reduces year on year - why not make the most of any tax breaks you can get?

Speak to an accountant about the benefits of interest only or repayment - also think about where will the money come from if any repairs are needed? Tenants are not always going to look after a property in the same way you would expect them to (this is speaking from experience - someone growing cannabis and drilling holes 6inches wide through walls, someone burning a carpet with an iron and denying all knowledge).

Run it like a business as that is what it is.