Interest rates outlook affecting new mortgage deal choice?
Discussion
I've had a mortgage for 2 years on a property that I run as a holiday let and this deal is coming to an end.
I have an option to take a 5 year fixed rate which would cost £322 per month.
I have an option to take a 2 year fixed rate which would cost £301 per month.
or I could take a 2 year discounted variable rate which would cost £274 per month.
There are other options in between these but the question I want to ask is the same.....
The cautious me would take the 5 year option to fix my costs. The holiday rental income will easily cover the cost.
However at the moment I can't see interest rates changing much given the economic outlook, so I am tempted by the lowest cost option above.
Given that Boris is suggesting he's going on a spending spree is that likely to affect inflation and result in some interest rate changes? What would others do?
I have an option to take a 5 year fixed rate which would cost £322 per month.
I have an option to take a 2 year fixed rate which would cost £301 per month.
or I could take a 2 year discounted variable rate which would cost £274 per month.
There are other options in between these but the question I want to ask is the same.....
The cautious me would take the 5 year option to fix my costs. The holiday rental income will easily cover the cost.
However at the moment I can't see interest rates changing much given the economic outlook, so I am tempted by the lowest cost option above.
Given that Boris is suggesting he's going on a spending spree is that likely to affect inflation and result in some interest rate changes? What would others do?
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