A assumpta1 Registered User Messages 31 21 Aug 2008 #1 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 ?
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 ?
C ClubMan Registered User Messages 49,239 22 Aug 2008 #2 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.
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.
A assumpta1 Registered User Messages 31 22 Aug 2008 #3 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.
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.