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ben kershaw

Repayment vs interest only mortgages

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Hi guys, was just wondering if any investors on here opt for re payment over interest only? I like the idea of interest only because of higher cash flow etc... but then In back of my mind i get a nagging voice saying go with repayment and do the responsible thing. I'm finding it quite hard to decide. Any one else feel the same way? Cheers. Ben.

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Why do feel that going with a repayment mortgage is "doing the responsible thing" ?

With an interest only mortgage your cashflow is, as you say, considerably higher and this can help provide the funds for your next purchase.

Most, if not all, interest only mortgages allow some repayment of capital as well if you find yourself awash with funds!

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3 hours ago, dennis hughes said:

Why do feel that going with a repayment mortgage is "doing the responsible thing" ?

With an interest only mortgage your cashflow is, as you say, considerably higher and this can help provide the funds for your next purchase.

Most, if not all, interest only mortgages allow some repayment of capital as well if you find yourself awash with funds!

Hi Dennis its completely right what you are saying mate. I think it's just the thought of coming to the end of the mortgages and not being able to sell or the property being worth less - which I know is highly unlikely. Tbh the cash flow that say 4 - 5 properties could achieve on interest only mortgages would be life changing for me as it could enable me to pick and choose when I want to work knowing that if I didnt work my mortgage and Bill's would be covered. 

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On 12/25/2019 at 8:17 PM, ben kershaw said:

Tbh the cash flow that say 4 - 5 properties could achieve on interest only mortgages would be life changing for me as it could enable me to pick and choose when I want to work knowing that if I didnt work my mortgage and Bill's would be covered. 

This is called "answering your own question". :D

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