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Interest only mortgage for property investment? : UKInvesting


Hypothetically could one with enough initial capital set up a ltd buy to let company using an interest only mortgage as a way to generate money to fund more buy to let’s? Although I think interest only mortgages are mega risky and you’re counting on the property to be worth equal or greater than it is now in 30 years time do you just negate this problem by setting up a ltd buy to rent company? If in 30 years house prices have plummeted does the ltd company not just fold. The bank gets the property and as a director I’m not liable for the company’s debts because all indications show that house prices should continue to rise? Obviously a personal guarantee may have to be signed for the first few properties but they could be paid off using the income they generate after you have interest only mortgages with no guarantee.

Obviously I’m not condoning this was just a shower thought I was thinking about but I’m definitely missing something out that wouldn’t allow this to happen right?



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