Interest only buy to let mortgage Belfast
Last Updated: 14th January 2026
An interest only buy to let mortgage is a popular option for landlords who want to manage monthly costs while building or maintaining a property investment portfolio. By paying only the interest each month, rather than repaying the capital, landlords can improve cash flow and retain flexibility.
At AIMS NI, we provide independent, whole-of-market mortgage advice to landlords across Northern Ireland. Whether you are a first-time landlord or an experienced investor, our advisors will help you decide if an interest only buy to let mortgage is right for you and guide you through the process from start to finish.
What Is an Interest Only Buy to Let Mortgage?
An interest only buy to let mortgage is a type of landlord mortgage where your monthly payments cover only the interest charged on the loan. The original loan amount (the capital) does not reduce over time and must be repaid in full at the end of the mortgage term.
This differs from a repayment buy to let mortgage, where each monthly payment reduces both the interest and the capital. Interest only buy to let mortgages are commonly used by landlords who plan to repay the loan through property sale, remortgaging, or another long-term strategy.
How Does an Interest Only Buy to Let Mortgage Work?
With an interest only buy to let mortgage, the process typically works as follows:
- You borrow funds to purchase or remortgage a rental property
- Your monthly payments cover only the interest on the loan
- Rental income is used to cover mortgage payments and costs
- The capital balance remains unchanged throughout the term
- At the end of the term, the full loan amount must be repaid
Because the capital is not reducing, lenders require reassurance that you have a clear and realistic plan for repaying the loan at the end of the mortgage term.
Why Landlords Choose Interest Only Buy to Let Mortgages
Many landlords choose an interest only buy to let mortgage for the flexibility it can provide. Common reasons include:
- Lower monthly mortgage payments
- Improved rental cash flow
- Ability to reinvest surplus income into property maintenance or portfolio growth
- Greater flexibility for experienced landlords
- Long-term planning options aligned with property investment strategies
- For landlords focused on building or expanding a portfolio, interest only mortgages can offer a useful balance between affordability and flexibility.
Who Can Apply for an Interest Only Buy to Let Mortgage?
An interest only buy to let mortgage may be available to:
- First-time landlords (criteria may be stricter)
- Experienced landlords and portfolio landlords
- Limited company landlords
- Self-employed landlords
- Applicants with stable rental income
Lenders will assess factors such as your experience as a landlord, your overall financial position, your credit history, and the expected rental income from the property. AIMS NI will help you understand how lender criteria apply to your circumstances.
Deposit Requirements for Interest Only Buy to Let Mortgages
Deposit requirements for interest only buy to let mortgages are typically higher than for residential mortgages. The exact deposit required depends on:
- The loan-to-value (LTV)
- Property type and location
- Rental income levels
- Your experience as a landlord
- Lender criteria
Generally, the lower the LTV and the stronger the rental income, the more mortgage options may be available. AIMS NI will advise you on realistic deposit expectations and how different deposit levels can affect your choice of lenders and rates.
Rental Income and Stress Testing for Interest Only Buy to Let Mortgages
When assessing an interest only buy to let mortgage, lenders focus heavily on rental income rather than personal income. They apply a process known as stress testing, which checks that the rental income comfortably covers the mortgage payments at a higher assumed interest rate.
Lenders typically look at:
- Expected monthly rental income
- Rental coverage ratios
- Property location and demand
- Long-term affordability under higher interest rates
AIMS NI will help ensure rental income is presented clearly and accurately to meet lender requirements.
Exit Strategies for Interest Only Buy to Let Mortgages
Because the capital is not repaid during the term, lenders require a clear exit strategy for an interest only buy to let mortgage. Common exit strategies include:
- Selling the property at the end of the term
- Remortgaging to another product
- Using proceeds from other investments
- Portfolio restructuring
AIMS NI will discuss exit strategies with you early in the process to ensure they are realistic, acceptable to lenders, and aligned with your long-term goals.
Interest Only vs Repayment Buy to Let Mortgages
When choosing between an interest only buy to let mortgage and a repayment option, it is important to understand the differences:
- Interest only mortgages offer lower monthly payments but require a clear plan to repay the capital
- Repayment mortgages gradually reduce the loan balance but result in higher monthly payments
The right choice depends on your investment objectives, cash flow needs, and long-term plans. AIMS NI will explain both options and help you decide which is most suitable.
Risks and Considerations of Interest Only Buy to Let Mortgages
While an interest only buy to let mortgage can be effective, it is important to consider the potential risks:
- The capital balance does not reduce
- Property values can fluctuate
- Interest rates may rise
- Exit strategies may need to adapt over time
- Long-term planning is essential
AIMS NI ensures you fully understand these considerations before proceeding, helping you make an informed decision.
Why Choose AIMS NI Mortgage Advice?
Landlords across Northern Ireland choose AIMS NI because we offer:
- Independent, whole-of-market mortgage access
- Over 20 years’ experience in landlord and buy to let lending
- Expertise in interest only and complex mortgage cases
- FCA-regulated, award-winning advice
- Advisors located across Northern Ireland
- Clear, professional and jargon-free guidance
- Support from initial enquiry to completion and beyond
Our aim is to help you secure an interest only buy to let mortgage that supports your investment strategy both now and in the future.
The AIMS NI Process for Interest Only Buy to Let Mortgages
- Initial Consultation – Discuss your investment goals and property plans
- Rental and Deposit Assessment – Review rental income and available deposit
- Whole-of-Market Comparison – Identify suitable lenders and products
- Application Preparation – Gather documentation and submit your application
- Lender Liaison – Manage underwriting and valuation queries
- Completion – Support you through to mortgage completion
We remain available to assist with future remortgages, portfolio growth, or refinancing.
Start Your Interest Only Buy to Let Mortgage with AIMS NI
If you are considering an interest only buy to let mortgage, AIMS NI can provide the expert guidance you need. We will assess your plans, compare lenders across the whole market, and help you secure a solution that supports your property investment goals.
Contact AIMS NI today for a free, no-obligation consultation and take the next step in your buy to let journey.
FAQs – Interest only Buy to Let Mortgages
Yes. Many lenders continue to offer interest only buy to let mortgages, particularly to experienced landlords with strong rental income and a clear exit strategy.
Yes. Lenders require a realistic plan to repay the capital at the end of the term, such as selling or remortgaging the property.
They can carry more long-term risk because the loan balance does not reduce. Careful planning and advice are essential.
Yes. Many lenders offer interest only buy to let mortgages to limited company landlords, subject to criteria.
Rental income is stress tested to ensure it comfortably covers mortgage payments, even at higher interest rates.
