Buy to let property not selling: what to do?

Hi,

I have a one bedroom buy to let property in Yorkshire (I now live in London). I bought it for £81,500 in 2010 on a 75% BTL and have let it out for the majority of that time. The rental yield is 6% before fees etc. Once they have been taken into account it drops to 3.5-4%. It has not proven to be a good investment and maintenance work / covering void periods has wiped out all profit. Over the entire time I have had it I have broken even at best but likely lost money.

I currently have it on a 5 year fixed, interest only mortgage. The fixed period ends in Jul 2021. The rate for this is very high (~5%) but was what was available/advised when I remortgaged in 2016. The repayments are £233 per month and there is a £3000 penalty for early repayment before the 5 year fix is up. With this penalty the total owed under the mortgage is £64k.

Earlier this year I decided to sell but, despite 9 months on the market and a competitive price (I was willing to accept £75,000 for it, there has been no interest except for a speculative offer of £50k, Even putting it up for auction didn't help generate interest.

My question is what I should do next. I think re-letting is the only choice in the short term, as I am currently having to pay out ~£450 each month to cover the BTL mortgage, council tax, bills etc and I can't do this indefinitely.

I also want to look at the mortgage position as it is expensive and also restrictive due to the long fixed in period. I think I have three options:

1. Carry on with existing mortgage at £233 pcm and look to sell again in summer 2021 when I will have £61k of debt against the property. Total mortgage payments between now and then will be around £7000.

2. Remortgage to cheap interest only mortgage with shorter fixed term (2 years) and look to sell again at the end of that fixed term (likely early 2020). From a cursory look I reckon I can reduce monthly mortgage payments to ~£110, including paying the early repayment charge. I will still have £64k of debt against the property in 2020 but will reduce expenditure on mortgage until I can sell again to ~£2500

3. Remortgage to a repayment mortgage which will be broadly the same cost as the current arrangement but will at least increase the capital in the asset. On a 2 year deal I would be likely have around £59k debt still outstanding on the property and will have been liable for ~£5500 of mortgage in that time.

Any thoughts appreciated, or other options I haven't thought if.

Thanks in advance!