Affordable housing and paying off a lump sum of the mortgage

billyhead

Folks,

Just a quick question. I have a mortgage for addofdable housing with Fingal Co Co which I took out in April 2006 for €110000. I have kept up my monthly payments and have managed to save up €40000 in the credit union. I was wondering would it be worthwhile and can it be done to pay off a large chunk of my remaining mortgage with the council or should I just leave the money as it is in the Credit Union? I think the terms of the contract are that I cannot break out of the mortgae for a minimum of 20 years i.e I don't own the house in its entirety until after the 20 years are up and I have fully paid of the mortgage. Also say you had the whole amount saved up to cover the rest of the mortage owed. Can you then but out the reamining mortgae adn the 20 year minimum contract no longer exists? Sorry if this sounds confusing.

D3PO

not sure of the terms but i'll tell you this much. get the money out of the credit union and into an account where you will get a decent return of interest on it !!!

You will get a far greater return on your savings.

The_Morrigan

I would assume if you pay the clawback to the council then they would remove themselves from your title deed and you can do what you like with the property.
Give them a ring and ask them.

The_Conductor

Its not normal to allow people who took mortgages under the AH scheme to pay off their mortgages early. It has come up in this forum several times previously. Do enquire by all means and let us know if the situation has changed- however hitherto people who sought to do this were given a blanket 'no' by their council.

Dandelion6

Do they allow you to overpay?

Eircom_Sucks

op fairplay for saving that much

i thought affordable housing was for people on really low income and couldnt afford a normal mortgage

but u saved average of €200 week over 4 years

why didnt you get a normal mortgage ?

sambuka41

Eircom_Sucks wrote: »

op fairplay for saving that much

i thought affordable housing was for people on really low income and couldnt afford a normal mortgage

but u saved average of €200 week over 4 years

why didnt you get a normal mortgage ?

I was about to ask the same question!!! Fair play to you OP!!:D

Victor

Eircom_Sucks wrote: »

op fairplay for saving that much

i thought affordable housing was for people on really low income and couldnt afford a normal mortgage

but u saved average of €200 week over 4 years

why didnt you get a normal mortgage ?

Perhaps you might change the tone of your post?

---

Situations change, incomes and expenses rise and fall. Certainly interest rates have dropped may repayments more affordable. Depending on one's spending profile, saving can be the hardest or easiect thing in the world. I remember back in 1993, I was a student working part time and saving £100 per week. The problem isn't that the OP was prudent, but that most other people weren't.

I think talk to the council. They are stuck for cash and may be willing to come to some arrangement. You paying off a lump sum now, might mean they can do something now that they currently expect not to be able to do for a few years. However, its likely that the council has back to back funding and would have complications with an early repayment.

Of course, make sure you keep something for the rainy day.