I am about to buy a house for around 250K. I have capital of 160K and so only need a mortgage of 90K. The problem is that 80K of the capital comes in the form of a lump sum after discharge from the Army which I won't get until about 4 months after I need to buy the house. Does anybody have an idea of the best strategy to overcome the 4 month gap while I wait for the lump sum?

Ask a mortgage advisor about a bridging loan.

Hi...the problem is that there are a few products that will allow you to reduce your mortgage by the 80K after 4 months. You could look at higher % no redemption products or possibly offset mortgages that will have the same effect as overpaying by depositing the lump sum in the current account with no penalty. So borrow the 160K at the outset if income allows and then make the payment when available, or if income doesn't fit you could finance by bridging for the shortfall, although higher interest, will allow you to continue with the purchase.

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Regards

Ian