can any one help

gladys_3

Bought House With Flintshire County Council In 1990, Paid It Off In2006. In All Those Years The Council Said Because We Lived In Wales We Had To Pay 1% Over The Normal Rate. Eg If It Was 5% We Had To Pay 6% Can They Do This. Also In Sixteen Years We Only Paid 3500 Pounds Off The Mortgage When It Was Only 13000 To Begin With. We Calculated How Much We Owed The The Council , But They Said It Was 350 Pounds More. I Thought They Could Only Charge You Early Redemption Feas If You Sold Or Bought Your House With In The First Five Years . Is This Right

silvercar

Normally when you buy a house off the council you arrange a mortgage with a lender this is completely separate from the council. If the lender operates one rate in one area and another somewhere else then you have to decide whether to choose that mortgage lender at the time, not later.

If your mortgage was interest only rather than repayment it would explain your figures.

The council normally charges a payback of the original discount if you sell within 5 years. Early redemption fees are something a lender would charge if you repaid your mortgage earlier than the agreed deal. There are often redemption charges, which could be as high as £350 for redeeming your mortgage before the end of term. There have been cases recently where lenders have repaid people the difference between the charges quoted when they took out their mortgage and the current rate.

I think you may be confusing Flintshire CC with your mortgage lender, check your paperwork - it should tell you who your lender is.

Post back if I've confused rather than helped, I have tried to cover a lot of points briefly.

silvercar

felt bad for confusing you, so tried to find out more information.

Flintshire CC did give mortgages. Not sure about the reason given why you are on 6%, but if it says 6% in your mortgage terms then that is what you are signed up to.

If you took a £13000 repayment mortgage at 6% interest over 30 years you would only have expected to repay about £3,500 after 16 years. Repayment mortgages all repay more interest than capital at the beginning.

If that £350 is a redemption charge that wasn't quoted in your orignal terms then you could query it, people have had this charge reduced in similar cases. I don't know if Flintshire do extra work at the time of redemption, it may be that, as they were the original owners of the property and then the lender, there is extra legal work to do. Worth a letter or two.

gladys_3

mortgage over 25 years , but thanks for the help

silvercar

gladys wrote: »

mortgage over 25 years , but thanks for the help

25 year mortgage at 6% over 25 years should have reduced the capital by more!

You need to get someone to go through your figures as something doesn't add up! Were there any charges (legal fees? mortgage arrangement fees? insurance?) that have been added to the mortgage?