Shared Appreciation Mortgage

tonyE1

Are there any threads on the SAFE case, I've searched but not found anything?
Thanks

bud51

Information regarding this case can be found on the SAFE web site:
http://www.safe-online.org/CALLING-ALL-HOLDERS-OF-SHARED-APPRECIATION-MORTGAGES.html

Another good link is:
http://www.thelawyer.com/cgi-bin/item.cgi?id=134998

You should find all the information you need on these sites regarding the Shared Appreciation Mortgage scandle.

feisty1

are u a SAM BOS customer

poppy10_2

Homeowner suing Barclays over mortgage repayment deal fears

A HOMEOWNER from Collingham is one of hundreds across the country suing his mortgage lender over the terms and conditions of his loan.

Ronald Pettit, 76, has lived on Hastings Way for 22 years and borrowed £48,500 against the value of the property through a shared appreciation mortgage (SAM) from Barclays in 1998.

The property is now thought to be worth around £450,000 but, under the terms of the loan, if it was sold Mr Pettit would have to pay his lender an estimated £236,000 because his home has increased in value since the SAM was taken out.

Mr Pettit, who shares the home with his wife Diana, said: "We have no intention of selling our house at present but we are anxious to ensure that we have a suitable asset to pass on to our two children who at present will receive very little.”

Barclays sold SAMs for a short time in 1998. In return for nil repayments on their loan, borrowers agreed that upon sale of the property they would repay the original sum borrowed.

But if the sale price was greater than the original purchase price, a percentage of the difference – up to a maximum of 75 per cent – was payable to Barclays.

House prices have soared over the years and as the SAM loans cannot be transferred to another property, some of the bank’s customers find they cannot move home because if they were to sell, after paying back what they owe, they would not have enough money to purchase a new property.

Borrowers including Mr Pettit are now taking advantage of recent changes to the Consumer Credit Act and are launching a group action against Barclays and another high street lender, HBOS.

The new provisions have retrospective effect and if a court determines the relationship between a lender and borrower is ‘unfair’, it has wide powers to vary the terms of the loan agreement.

Squirty

Hiya,

My mum has one of these and is now at retirement and i want her to sell her house and move into a nice retirement place instead of paying for the upkeep of a house she doesnt need, nor can afford. But due to the amount she would have to pay BoS under this scheme it means she could not even afford to buy a new property to live in.

Can anyone tell me the options she may have of addressing this?

Thanks

Paul

EdInvestor

Search this forum under "SAM mortgages.

Example (Barclays):

http://forums.moneysavingexpert.com/showthread.html?t=480287&highlight=SAM+mortgages