Everyone I talk to about IP says you should go for a fixed rate to minimise your risk.
But has anyone looked into using a fixed/floating interest rate swap to hedge the risk of interest rate movements. If you had several properties it might make sense to use swaps and it gives you the added benefit of being able to find the best variable mortgage and the best swap price seperately -- from different banks.
I am interested to know if anyone uses this kind of strategy and whether it is better (cheaper?) for property finance?
Andrew.
But has anyone looked into using a fixed/floating interest rate swap to hedge the risk of interest rate movements. If you had several properties it might make sense to use swaps and it gives you the added benefit of being able to find the best variable mortgage and the best swap price seperately -- from different banks.
I am interested to know if anyone uses this kind of strategy and whether it is better (cheaper?) for property finance?
Andrew.