Deciding on interest only vs capital repayment When taking out a mortgage on a buy-to-let property, you’ll be able to choose between repaying a small amount of the loan each month until you owe nothing at the end of the mortgage term (a “capital repayment” loan), or just paying off the interest each month so that at the end of the term you still owe exactly as much as you borrowed in the first place (an “interest only” loan).
