Hi I am looking for some advice as I find myself in a position where I can either continue on my fixed rate mortgage for a buy to let property or switch to a variable rate. My fixed rate term is due to expire in 7 years and the rate is 5.45%. The variable rate has now gone up since last Thursday to 5.35%. So the monthly mortgage is more or less the same whether on the fixed or variable rate.
The property is costing me money between management fees, tax, property tax etc.. The monthly rent I receive from the tenant does not cover it.
I have a lump sum of €20k which I could use to reduce the overall amount and there is a chance the bank might allow me to continue on the fixed rate and reduce the amount by €20k.
Given the economic situation is abissmal and in my opinion not likely to improve significantly for at least another 5 years do you think I should stay with the fixed rate? Or is there a chance that variable rates may decrease in the future?
Any advice would be welcome. Thank you
The property is costing me money between management fees, tax, property tax etc.. The monthly rent I receive from the tenant does not cover it.
I have a lump sum of €20k which I could use to reduce the overall amount and there is a chance the bank might allow me to continue on the fixed rate and reduce the amount by €20k.
Given the economic situation is abissmal and in my opinion not likely to improve significantly for at least another 5 years do you think I should stay with the fixed rate? Or is there a chance that variable rates may decrease in the future?
Any advice would be welcome. Thank you