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 ?

* Is it possible to switch the mortgage to a joint mortgage with my father ? or would the mortgage have to be solely in his name ?

I'd apprieciate any input on this...thanks in advance

Which bank is promising you the 9.9% mortgage? do you have wage reciepts from your work abroad? I had this problem and was advised to get an apostile or something called that from an Italian friend buying in Bulgaria with the same problem. I never did and got my partner to get it in her name (we are not married so she got it alone). 6.7% interest rate.
I hope this helps or if someone else can elaborate.

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

I will find out the bank tomorrow and I will ask my lawyer about this apostile and post it.

I have wage slips and bank statements for the last 6 months in Korea and England. Getting the mortgage with my fathers name on it is an option. However, my credtit rating is rated as poor (647/1000) - in the bottom 25%, I very very surprised to hear this.

If I get the mortgage jointly with my father, will my credit rating affect the 6.5% interest loan or would the mortgage have to be in only my fathers name ?

Thanks again

Thanks Dashy for the help. Would BHL dish out a 7% loan to someone with a poor credit rating ? My credit rating is rated as poor (647/1000) - in the bottom 25%.

I will try to find out through this DSK company later today hopefull and post their response.

Hi again,

DSK is a Bulgarian Bank that BHL is working with. At the time I`ve applied for my mortgage and produced them my Credit Report - the pass mark was very low, but things change. Call BHL I am sure they will be able to advise you further.

Come accross this in todays news on novinite(dot)com:

EIU: Bulgaria to See GDP Growth Decline to 5.1% in 2009

So you may want to take this in to considiration before going ahad. Personaly I think there is a oversupply of properties to the market at the moment, and I am thinking of selling...

Regards
Dashy