CLIPS, Nothing wrong with what you did, it worked well thats all that matters. Interest only against paying the pricipal only means you move on to your next buy quicker. If you want to slow the process down or stop with what you have then what you did is best. If you want the benefit of the largest property gain with the least money involved then you are wrong. After your first buy without adding your own personal money towards it with the final goal being that this is your money that will keep you in luxury in your old age then i am right. The profit is in capital gain, the more capital gain you take on board the better. The faster you get the second property with peter paying paul the better, paying principal over the top slows you right down. macdunk