Jump to content

HELP , what's the best move forward as an investor ?

Recommended Posts

Hi , looking for advice .  I am about to buy my first buy to let property I have three choices of interest rate . 

1/ 2.73% with an arrangement fee £1995 making monthly payment £234.88

2/ 2.89% with an arrangement fee of £ 995 making a monthly payment of £246.24 

3/ 3.05% with no arrangement fee making a monthly payment of £257.34


 As an arrangement fee can be offset against tax is it better for me to pay that upfront ,offsetting it this tax year and earning more profit ,or am I better to go for the overall cheaper option number 3?


 I am just starting to get used to thinking like an investor rather than a home owner who of course would go for the overall cheaper option the mortgage I have will be interest only in this case so surely cash flow is best .



please help 


newbie ruth !

Link to post

You need help from 2 people, 1 a mortgage broker who will work out total cost of the rate and fee over a set period of time, thus giving you the cheaper option over a set period of time, and then an accountant/tax advisor who can advise the most tax efficient option.

Wesley Davidson


Director & mortgage broker



01179 897 950


07967 033 452








Link to post

Hi Ruth,


How long is your deal fixed for and what are your intentions for when that deal ends? Will you move to another provider? 

If you have a 2-year fix for example and difference between 1&3 is £539.04 but then you're paying £1995 arrangement fee it wouldn't stack up based on that, there are other factors which need to be considered mainly around your tax status and future intentions.


Hope this helps



Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...