Tracker vs Fixed

[pagwill]

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?

[Melboy]

2yr. fixed as IR are going to rise very shortly.

You don't give the £££ comparison rates though.

[Richlist]

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

[Melboy]

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 .

[Richlist]

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.

[Mortitia]

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.