Oh crap. Ilze’s bank (Fortis) have lent us the money for a deposit on the windmill. Having done that, they expressed surprise that we did not approach them about a loan for the property (which Ilze did, and they made it quite clear that they do not lend money to cover transfer costs). Now suddenly, they aren’t only willing to lend us the full amount, but they can offer us a 3% interest rate as opposed to 5% at Citibank.

But our friend at Citibank has already gone to a lot of trouble for us, our application has been processed, and apart from the signing of the loan agreement we’ve all but committed to them. Our contract with the seller even specifies that the sale depends on the loan from Citibank being approved.

Do we risk seriously pissing off (and possibly embarrassing) a friend, perhaps even violating the contract we’ve already signed, or do we bite the bullet and settle for a much higher interest rate?

Ahh, stress headaches and caffeine indigestion, my faithful companions…

Categories: Finances
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