My buy-to-let mortgage is due for renewal at the end of the year. I have been on a tracker but think that I should move to a fixed rate as Bank of England base rate may go up next year. I have no intention of selling so I was wondering if it would be wise to go for a 10-year fixed rate mortgage.
For landlords who are interested in protecting themselves against future rate rises, we’ve been recommending longer term fixed rates to our clients for some time now. Currently (5th October 2015) only The Mortgage Works offers a 10 year fixed rate buy to let mortgage. At 4.99% (5.04% APR) to 75% LTV with an arrangement fee of £995 it is well priced. But do think hard; locking yourself in for such a long period could cost you dear in Early Repayment Charges if your circumstances change and you need to sell or refinance. You might be better opting for a five year fixed rate and there is currently lots of choice with pricing starting from 3.09% (5.31% APR) to 60% LTV plus fees of £2,495. Do get in touch to talk through the options.
Take a look at Steve Olejnik's blog on the pros and cons of taking a 10 year fixed rate buy to let mortgage.