Reduced monthly costs make it easier to cover periods when the property is empty ("void periods") or needs repairs.
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 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. Reduced monthly costs make it easier to cover
An is a loan used to purchase a rental property where you only pay the interest charges each month, without reducing the original amount borrowed. This is the most common way for landlords to finance investments in the UK because it maximizes monthly cash flow. 1. How It Works This is the most common way for landlords
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
