Long term Buy to Let and Down payment. Advice

JJRome

The plan is to buy a property to rent. They offered me a mortgage with a 25% down payment, but my intention is to put down 40% and take a 5-year fixed rate.

The property is located in an area with very decent demand for rentals, it will cost £220,000 and will be rented for £1,400 a month, which is not bad in my opinion.In 5 years I plan to retire and pay off the rest of the property and use it as a source of income.

something wrong with this line though?
 

ACG

I dont understand the last sentence/question. 

Also who is "they"? Surely if you requested a 60% LTV mortgage, they would come back with that rather than a 75% LTV mortgage? 

From_Cordoba

My question is, is it a smart move to do it this way? I understand there is more risk involved, but since this is a long-term investment, maybe it's okay. or am i missing something

housebuyer143

From_Cordoba said:

My question is, is it a smart move to do it this way? I understand there is more risk involved, but since this is a long-term investment, maybe it's okay. or am i missing something

BTL is more about capital growth than owning the houses outright so most people put down the minimum and then use the remaining money to fund other investments etc rather than have it all in one property. That's also why they are taken on interest only. 

No right or wrong way tbh just depends if you want that cash for other things.