Quote:
Originally Posted by ThePLOGrinder
What do we think about interest only mortgages or do we prefer repayment for buy to let?
I don't think there is a hard and fast rule here. It's something that you'd consider in context both your goals and overall portfolio relative to those goals. Personally I don't do interest only because:
1. the payment difference is generally insubstantial
2. less risk over time
3. refi options after about 10 years tend to be more palatable with more equity
4. I see pay down as "profit", albeit deferred profit
But again, there is no rule here. It depends.