I want to clear mortgage on AF - is this possible?

Lola Evans

Registered User
Messages
1
I have looked everywhere I can think of online and I can't find the answer to this question.

I bought an affordable house 5 years ago. There is a chance that I could be gifted some money from abroad to clear the loan (and only for that purpose) so that the house is mine - no more mortgage payments (I am struggling badly why this has been suggested after I was made redundant). The bank said in theory I could walk in tomorrow with the amount, say for example €200,000, but they have no idea about the council's role in it. My mortgage is with the bank obviously.

I wouldn't be selling it - the clawback is 22% for 20yrs - but would the council prevent me from clearing the loan and force me to pay the clawback fee?

I'm waiting to hear from the council but they seem very reluctant to take my calls. The person will gift the money for the amount on the loan but will not entertain paying the clawback fee. I have no savings at all since I lost my job.

Any advice on what to do? I'm really lost and on my own on this and would appreciate any help!
 

Monbretia

Frequent Poster
Messages
1,638
Well if it transpires that clearing off the mortgage is an issue for the council maybe you could pay a lump sum off it without penalty, say for example 190k and reduce payments to clear the 10k left within the time left on the mortgage, would give you teeny tiny repayments while still keeping a mortgage if that matters.

I can't see why it would matter though, the clawback is on selling surely which you are not doing.
 
Z

zen

Guest
no one will question where you got the money from if you want to redeem the loan, none of their business. As Monbretia said, the clawback is only applicable if you SELL which has been echoed time and time again on this forum. Also it is only applicable if you sell it ABOVE the price you paid......All property bought during that period will have lost about 50/70% so no fear of that financial instrument kicking in.

What you are doing is REDEEMING the loan before the mortgage term. So for example, if you have 15 years left on the loan you are redeeming early you are STILL bound to the council, "just in case the value goes up" for the remaining period, this will also mean you will not be even allowed to lease out your home that you have fully paid for without their permission which as you know, they dont permit. (bumer eh....)

The only way to sever the link with them is to SELL. So the only idea I can think of is if you have a spouce/partner you can trust and "sell" it to him/her.
 

Society

Frequent Poster
Messages
163
Does anyone know if the legislation might be changed soon to permit a remortgage or buyout of the clawback? anyone been successful in reaching an agreement with the council to do so?
 
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