UK Landlord Forum / Life

Hello

This is my first BTL property and I although I feel I can achieve the full repayment mortgage plus an extra 200, I have opted for the interest only mortgage with the option to pay up to 10% overpay towards principle and of course I am going to put the rest in the bank to pay more down at the end of the 2 year term.

My thought process is for the first 2 years in the game, I don't want to get caught out by any unexpected expenses or crises.  The buy to let interest only rate is 1.85 so I feel this seems like a reasonable move.

Am I missing something, does this sound reasonable??

It's a reasonable approach, so long as you do have the self-discipline to keep putting aside the extra capital every month. There is a cost penalty, as compared with a full-on repayment mortgage, but the flip side is you've got that extra bit of liquidity for if the boiler goes pop or your tenant stops paying the rent or whatever.