We've been offered an 18-year mortgage at standard variable rate for £95,000 and monthly payment of £593. This would allow us to do renovations using money that we are getting in December/January.
Or, we can get a bridging loan of £87,000 for four months, then reduce that to £40,000 with the money we get in December and pay that off in 5 years, leaving us with no mortgage, but also no immediate money for renovations.
We are currently expats, we've been living in Europe for 9 years, 6 years at the same address, but that has caused standard banks to reject us for mortgage lending because we are on the electoral roll in Brighton, as we are not entitled to vote while living in Belgium. Also, we are basing the application on my earnings from my new job, but I have a standard probationary period and the banks are saying they won't lend when someone has a probationary period. Even though I am a teacher and the probationary year is generally seen as a formality in most schools to make sure we really aren't barmy.
One broker has found us the 18 year mortgage, another has found us the loan option. Which one is a better idea? Any advice gratefully accepted. Our personal deposit is around 70% with the loan, around 60% with the mortgage.
Or, we can get a bridging loan of £87,000 for four months, then reduce that to £40,000 with the money we get in December and pay that off in 5 years, leaving us with no mortgage, but also no immediate money for renovations.
We are currently expats, we've been living in Europe for 9 years, 6 years at the same address, but that has caused standard banks to reject us for mortgage lending because we are on the electoral roll in Brighton, as we are not entitled to vote while living in Belgium. Also, we are basing the application on my earnings from my new job, but I have a standard probationary period and the banks are saying they won't lend when someone has a probationary period. Even though I am a teacher and the probationary year is generally seen as a formality in most schools to make sure we really aren't barmy.
One broker has found us the 18 year mortgage, another has found us the loan option. Which one is a better idea? Any advice gratefully accepted. Our personal deposit is around 70% with the loan, around 60% with the mortgage.