The Ghost Writer by John Harwood is $2.99 at Amazon US.
$2.99 is a bit higher than what I would usually share when it's an author I've not read yet myself. But this book sounds much better, denser and more literary than most horror novels.
Quote:
Timid, solitary librarian Gerard Freeman lives for just two things: his elusive pen pal, Alice, and a story he found hidden in his mother’s drawer years ago. Written by his great-grandmother Viola, it hints at his mother’s role in a sinister crime. And as he discovers more of Viola’s chilling tales, he realizes that they might hold the key to finding Alice and unveiling his family’s mystery.
But upon returning to his ancestral home in England, Gerard finds that the stories-within-stories of his past begin to blur the lines between fact, fiction, and fantasy. They’re also driving him so deep into the dark that he might not be able to see what’s right in front of him until it’s too late.
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Edit: The book has been $1.99 in the past and it looks like I also picked up his book
The Asylum (though clearly I haven't read it yet). He has a third book: The Séance. He seems to like writing Gothics.