BTL remortgage dilemma

Happytosave

My brother and I own a rental property which has about 16 years left on the term. We intend to keep it

The current mortgage rate expires this summer so we need to remortgage but the broker and bank fees for fixed mortgages are £2.5k. The broker has access to the whole market. The comparable option would be to stay with the current lender and get a tracker mortgage. This product has no fee.

I'm happy to do this but brother is not sure about the economic climate. We have savings of £8k as a buffer.

What do you suggest given the current climate- tracker or fixed?

ACG

Its not what we think.

Its a business decision for you and your brother.

However… one conversation I am having a lot on residential mortgages is that variable rates are so much cheaper at the moment that the reality is you would likely need 2-3 rate rises within tie in period to be any worse off.

The bank of england have acknowledged that inflation will go above 2% and are not overly concerned in the sense that they do not think it will "bed in" and will not result in mass pay rises like it did in 2022 (the Russian/Ukraine war).

I am no economist, but I believe the expectation of rate rises is limited. If you think the same, then there is an argument for a variable rate. If you disagree then fixed is probably the route. But you guys need to decide it between you. Rather than doing it on what you think, have you looked into market expectations?

Happytosave

https://forums.moneysavingexpert.com/discussion/comment/82020636#Comment_82020636

Thank you for your reply. We have both been trying to research this. Where would we look for market expectations?

Jemma01

Difficult to predict if some idiot will start a war or introduce new problems somewhere that affects us. Locally, it's been going down steadily, when I started in 2024 my tracker was 5.44%, then it dropped to 3.94% 2026.

Some lenders like HSBC will let you switch from a tracker to fixed if you changed your mind without ERC. So you can always start with it and change your mind if the situation changes. Just make sure you read the terms and conditions on paper.

ACG

Google - Bank of england base rate predictions

This is what I read the other day - https://www.theguardian.com/business/2026/may/29/bank-of-england-bailey-says-no-rush-to-raise-interest-rates-amid-iran-war-uncertainty - Although it can change by the day with thoughts.

amnblog

Which Lender are you with currently?