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Halifax offer RTBY

Hello all,
its been quite enlightening viewing this forum last couple of days!
I'm in process of RTB my council flat, four in a block, top left flat, nice flat own garden at rear, valued at 63500, 1940's though they have been selling for a lot more than this! I can buy for 24,130. I have a 5000 deposit, I can put in 7000 but I would like to leave 2000 in my premium bond! Yes, Ihave seen the calculator! So I'm looking for 19,130. I will handle the solicitors fees approx 459. Halifax have offered a 2yr fixed at 7.09% over 10 yrs or 12 yrs. no extra fees to pay 250 cash back, the first quote over 10 yrs borrowing 17130 gave a total to pay back of 24,752.99, the present quote is borrowing 19130 over 12yrs leaves 29,461.80! which seems a helluva big jump to me. I am self employed 1yr10mths, self assessed, total income £1360 per month.

Would I do better with an unsecured loan? northern rock asked for 2 yrs audited accounts which I dont have. My own Lloyds tsb were quite happy with my bank statements, but their initial offer in principal for a mortgage was not very good, how do I pay the least amount of interest on such a small amount? i have zero debt.
thanks
Alastair
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