pagwill Posted May 15, 2014 Report Share Posted May 15, 2014 I need a buy-to-let mortgage and am really tempted to go with a 2 yr tracker due to the low rates. The 2 yr fixed rate has the obvious safety net, but does anyone have any opinions regarding which to go for? Link to comment Share on other sites More sharing options...
Melboy Posted May 15, 2014 Report Share Posted May 15, 2014 2yr. fixed as IR are going to rise very shortly. You don't give the £££ comparison rates though. Link to comment Share on other sites More sharing options...
Richlist Posted May 15, 2014 Report Share Posted May 15, 2014 Its quite a difficult decision to make. Presumably the fixed rate is higher ? Yes, interest rates are inevitably going to rise at some point but..... * With an election a year away, rises are unlikely to be before the election. * Nobody will want to risk reversing the economic recovery....its still quite fragile in many parts of the country. * If they rise I believe they will be small rises as we are nowhere near being out of the woods yet. I think interest rates will have risen 2 years from now ....but I don't think they will be more than 1% higher Link to comment Share on other sites More sharing options...
Melboy Posted May 16, 2014 Report Share Posted May 16, 2014 I believe IR will rise before the GE. The IR will be at least 2.5% within 2 years. We will have to see if my forecasting is correct . Link to comment Share on other sites More sharing options...
Richlist Posted May 16, 2014 Report Share Posted May 16, 2014 If base rates rise to 2.5% within the next 2 years it will result in a large section of the population being unable to meet their loan repayments. It might stop run away house prices but its likely to result in a collapse of the economy. I do hope you are wrong. Link to comment Share on other sites More sharing options...
Mortitia Posted May 17, 2014 Report Share Posted May 17, 2014 I think Mel is correct. Interest rates have to rise (my Natwest person has already hinted this to me some months back) and BTL will be in the frontline for obvious reasons. Time for part-redemptions on my part. Little point in having savings right now. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.