buy to let mortgage - need advice

A

assumpta1

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Our buy to let mortgage rate (interest only) is due up soon - the rates we've been offered (PTSB) are as follows:

1. Tracker variable - currently 6.03% (ECB+1.78% max)

2. Standard variable - currently 5.94%

3. 2 year fixed rate - currently 6.45%

Options 1 & 2 are covered with the rent leaving a small cushion for extras - option 3 we would be out of pocket.

Should we stick with a variable ? Any thoughts anyone ?
 
Are you going interest only or annuity/repayment?

Interest only mortgage for investment property

The best bet for long term cost effectiveness is a good value tracker rate. Remember that the SVR margin can change any time. And timing the market by choosing fixed rates to save money over a competitive tracker rate is a mug's game.
 
thanks yes it's interest only - not planning on going capital repayment until it can cover the rent - it's a longterm investment (very longterm!).

Maybe I'll go with tracker in that case... thanks.
 
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