Sandwell, the West Midlands council, has sold nearly 600 mortgage debts to a building society and is set to gain£4...
Sandwell, the West Midlands council, has sold nearly 600 mortgage debts to a building society and is set to gain £4m, reports the Brimingham Post (p4 August 26).
Borrowers who took out mortgages with the council, mainly to buy their council houses, have accepted an offer to have their debts transferred to the Staffordshire Building Society.
They will gain by having interest rates 1.5% lower than present repayment rates, extra insurance and the option of home improvement loans.
And the council will have the cash to spend on building and repairing homes, sports centres, playing fields, parks and schools.
The council made the move because of the government's one year relaxation of spending controls, allowing councils to use all the money they raise from sales for their own projects, reports the Birmingham Post.