Interest Only Buy To: Let Mortgage

By not paying down the capital, landlords can often save enough rental profit to build a deposit for a second or third property much faster.

For many, the mortgage interest can be used to offset rental income tax, though rules for this have changed recently (e.g., Section 24 in the UK), and you should consult a tax professional. Buy-to-let mortgages explained - MoneyHelper interest only buy to let mortgage

Your monthly bill covers only the interest accrued on the loan. For example, if you borrow £200,000 at a 5% interest rate, you pay roughly £833 per month. On a repayment mortgage, you might pay closer to £1,170. By not paying down the capital, landlords can

Reduced monthly costs make it easier to cover periods when the property is empty ("void periods") or needs repairs. For example, if you borrow £200,000 at a

Lenders require a credible plan to repay the full lump sum at the end. Common strategies include selling the property (ideally after it has increased in value), using other savings, or remortgaging. 2. Why Landlords Choose It