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Rate switch on a buy to let mortgage
teabody
Posts: 212 Forumite
Hi,
I currently have a btl coming to the end of a fixed product at 3.69%. The mortgage is with TMW direct and it would revert to the managed rate at 4.99% if I were to do nothing.
The balance is approx £39900 and payments are currently £122.49 interest only.
I have compared a few options. The none paying of arrangement fees option is 4.29% taking the monthly amount to £142ish but also I can pay a 2.5% arrangement fee(£997) and add to loan for a rate of 2.74%(tracker)monthly amount of approx £91 IO.
My thoughts are that having worked it out and in the hope that the base rate stays as it is till Dec 2015 that i could take the tracker and go back onto repayment for a while....i would do this if it was my residential mortgage but for a btl ? Any thoughts?
Each product is for 2 years.
I currently have a btl coming to the end of a fixed product at 3.69%. The mortgage is with TMW direct and it would revert to the managed rate at 4.99% if I were to do nothing.
The balance is approx £39900 and payments are currently £122.49 interest only.
I have compared a few options. The none paying of arrangement fees option is 4.29% taking the monthly amount to £142ish but also I can pay a 2.5% arrangement fee(£997) and add to loan for a rate of 2.74%(tracker)monthly amount of approx £91 IO.
My thoughts are that having worked it out and in the hope that the base rate stays as it is till Dec 2015 that i could take the tracker and go back onto repayment for a while....i would do this if it was my residential mortgage but for a btl ? Any thoughts?
Each product is for 2 years.
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