Quote:
Originally Posted by TrumpTowers
I've got an unusual dilemma. I bought 2 off plan apartments in a ski resort (Bansko). I had calculated that I'd be paying the normal 6.5% interest, so everything looked great.
However, I have lived in Asia for 6 years and this had seriously affected my credit rating. So the finance company is saying I have to pay 9.9% on my 2 x 20 year mortgages !
I've already paid 30,000 pound the 30% desposits on both apartments. I've never missed a payment on my student loan (which is paid) and have very rarely even used my credit card. However, the lack of a P60 seems to give the Bulgaria bank an excuse to strong arm me into this 9.9% interest mortgage.
The finance company says that this is the only bank that will give me a mortgage, too be honest I don't know whether to believe them. Has anyone else had a similar problem ?
I have a few questions I hope someone could kindly help me with:
I have 6.5% five year rental guarantees on both properties (170,000 Euro combined), however if I'm paying 9.9% then those guarantees wont cover the mortgage payments.....I'm planning to keep these properites for at least 5 years
* Is it better for me to do an interest only mortgage for 3 years to get a credit history and then get a better rate after that ?
or
* Get a full mortgage at 9.9% for 3 years (which I can cover) then go for the better rate ?
I'd apprieciate any input on this...thanks in advance
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Hi,
I have a low geared property in sofia mortgaged through DSK with interest rate of 7%, arranged couple of years back tough UK based company called Bulgarian Home Loans. Spoke to them last week and they are dealing with Perause Bank and DSK and you can re-mortgage I am sure. It might be required for you to go for 9.9% and re-mortgage shortly after, depending on other things too, bare in mind BHL will require a copy of your Credit Report should you proceed with them.
Hope it Helps