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Thanks Kim. Looking at that thread, and one or two linked to it, the theory (as I understand it) is that the cost of being highly leveraged is offset by higher capital gains. I need to do some proper calculations, but an interest only mortgage is about two thirds of the cost of a repayment...

A slight thread hijack here, but why the focus on interest only? Running Cath's borrowing requirements and interest rates through the BBC Mortgage Calculator gives $770 per month interest only and $1100 per month for repayment over fifteen. (Her numbers seem closer to a $120K borrowing...