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Advice on loan type

TJI999
TJI999 Posts: 23 Forumite
Ninth Anniversary 10 Posts Combo Breaker
in Loans
I am about to borrow around £200k to buy into a veterinary practice (business + 2 premises) as a third share.
Loan duration is 15 years.
The loans offers I've had range from 2.39% for a 3 year tracker to around 3.99% for longer fixed rates.
I'm having difficulty deciding which type of loan to go for. I'm really after the cheapest deal but concerned about potential interest rate rises in the future. Would appreciate any advice!

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    It's personal choice. My preference is to go for the lowest possible standard variable rate mortgage. Maybe fixed for a few years or discounted with a tie-in as long as the revert to rate is the lowest possible....i.e lower than 4% long term and then never remortage.

    If you are worried about interest rate rises then go for a long term fix. Maybe 5 or 10 years. You'll need a broker to find the best deal.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Assuming trading figures stay the same for the foreseeable - how much per year is your salary/dividend worth?
    Is there scope there either to overpay or build up a fund to use when interest rates rise?
  • TJI999
    TJI999 Posts: 23 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    Thanks for the replies. To answer your question- currently around £80k. Repayments will be around £1500 per month.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 June 2014 at 5:35PM
    TJI999 wrote: »
    Thanks for the replies. To answer your question- currently around £80k. Repayments will be around £1500 per month.
    Are you saying you will receive an income of £80k per annum?
    If so after tax and NI what is left that you could save>?
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