Interest only or repayment?

[Frokni]

Hi everyone

Am about to purchase my first buy-to-let property (well, avidly property hunting) and will be hopefully making an offer on 1 in the next week. Market is good for both buyers and tenants where I live.

Can i take it to a vote: would you choose or have you chosen either interest only or repayment and why? - phrased that badly, am just very excited about investing :-)

Thanks in advance :-)

Make sure you save the £300 a month 'profit' (and it's not profit btw). You are quite likely to have a situation where your tenant decides not to bother paying you rent. Your mortgage still needs paying though and it can take months and months and months to get them evicted.

And yes you'll also need a repayment vehicle for when you retire. £300 a month isn't much of a pension.

Hi guys. This post has gained more traction.

@oakleaffy I will move to a repayment mortgage when I go back to Full time work. It was my first choice but my advisor suggested I stick with the good rates for interest only and am locked in for 5 years. I feel good about it tbh!

@ittooshallpass I understand it's not everyone's cup of tea and all your warnings have been noted and my reserve account ready for awful tenants and tax. I began my stocks and shares ISA with my financial advisor after getting the inheritance. I am not putting all my eggs in one basket though, hence the BTL, savings and an additional stocks and shares ISA. I am incredibly blessed, it must sound like I inherited millions lol, but i have got to be so careful with this windfall and not just stick it in one place. I will keep your advice in my back pocket. But, being from a family who weren't great with investing and money management I just wanted to be brave! (buckles self in for crazy ride)

@yourestandingonmyneck thank you for your kind words. I am highly suggestible which makes me know this is right as more people have been against it than for it and I haven't backed down. Am very excited. PS. I love the Daria reference.

Thanks again MNetters:-)

MN can be so needlessly negative sometimes. There was a previous poster near the beginning of your thread who gave some really good advice without putting a downer on it all....I think you're sorted anyway and know what you are doing.

Nobody has ever got the Daria reference before! 👏😃

@yourestandingonmyneck tbf this was a good thread compared to others. I think being a landlord is the divisive topic and not necessarily the investment of a property. Or flipping properties tends to be seen as a short term thing (and is for many) and very fast money focused.

I am very much looking forward to it but know it's a risk. Yes, yourself and a couple of other posters were positive and I do appreciate the advice given. It's all very exciting