3% no fix OR fixed at 6%?

darkman13

hi guys this is a straight question, i have an option of going 3% with nat west on commercial mortgage for above base rate or go for a 6% fixed for 5 years. there both repayment for 120000 on a 220000k commercial property, which one would you go for and why? any ideas as to pros an cons, nobody knows what the rates will be in the future but i have a feeling it wont go above a 1% for a year or so. thanx in advance. :j:confused:

Thrugelmir

What fees are payable on the 2 options?

darkman13

£250 on non fix £995 on fix. Both charges are ok for me but the options are both good and bad in their own way

dimbo61

Are you planning on staying in this commercial property long term ?
Does the business need/want steady outgoings ?
Would you like to repay the mortgage asap and own the property?
Can you put the interest part of the mortgage against your income from the buisness.
Do you need to speak to your accountant !

darkman13

Thanx for that, the questions asked answer the hypothesis!