Interest Only vs Repayment Buy-to-Let Mortgages

When dealing with finances the word ‘Debt’ can always cause panic amongst people. Today Samuel will discuss how good debt, not bad debt can be utilized into your favour.

Financing property deals without your own money will give you two methods of repayments. That’s either interest-only payments or buy-to-let mortgage repayments. Which is the better one?

Samuel has been in the game for over ten years and although he isn’t a financial advisor he has few thoughts on the payment methods that have served him best over the years.  Interest-only methods of payments are something that Samuel feels offers a better ROI.

They present the opportunity to turn the debt you have accumulated into good debt. Using the debt and reinvesting it into another property creating further cash flow. A lot of people are usually concerned with the interest rates but if you negotiate it smartly you will be able to get a fixed interest rate for the next 10 years.

A lot of successful people throughout their formative years have acquired debts through various investments but they are also financially free and continue to leverage the interest payments into their favour.   A key component being a success at this is making sure the property you have is a good one which will give you the chance to resell for a profit when your term is up.

Property always increases while money always shrinks.



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