Deferred council rates

Frank thinks that deferring his council rates is a better option than taking a concession. Does this make financial sense?

Q. Frank

Pensioners have the option of deferring council rates rather than taking a discount. It occurs to me that if you are likely to remain in the same place for a long time this might be a better option as no interest is charged and inflation will reduce the value of the debt. What do you think?

A. Before taking any financial decision, you should consult a financial advisor who can ensure you are fully aware of the implications. We are not licensed to give such advice so any information is general in nature.

Firstly, some councils do charge interest on deferred rates, albeit at a lower rate.

Secondly, the debt will be recovered once your property has been sold so you will need to be certain that there is the capital in your home to cover the debt and that it will not adversely affect your finances.