MSE News: Homeowners to sue banks over 'unfair' mortgages

mmillie

loup67 wrote: »

Most people owned their houses outright,ie their £100,000 house,borrowed £25,000,as you put it the house could now be worth £260,000 so to redeem the mortgage they will have to pay the original £25,000 plus 75% of increase £120,000 ie £145,000 so left with £115,00 which yes is £15,000 more than when they took out the loan but considering £260,000 is now the average price they would have to pay for another home leaves quite a shortfall!Where oh where do you see any profit in that!?
I find it incredible that people are so unsympathetic to people being charged over 500% and "trapped".To me it is completely unethical.

If I bought £25k of shares from a company, and that company's value sky rocketed so that my shares were worth £115k, I would be pretty annoyed if the company then said it wanted to revert to private ownership and sued me for it being too expensive to buy me back again.

These people sold off a share in their house. That share sky rocketed in value, and now if they sell their house they will have to give some of the share of the profits back to the bank. They didn't sell of at a particularly smart rate, but I'm sure we've all picked poor products before. I bought a French car once, and now the resale value is poor. I'm not suing Renault though - that was my mistake.

Martin

EdInvestor

http://www.guardian.co.uk/money/2009/oct/08/shared-appreciation-mortgage-class-action

Some victims may be caught by a timebar.The SAM mortgages work out at an interest rate of 35-40% a year. Not quite as bad as the Provy, but still pretty usurious.One wonders if the victims were ever shown comparison APRs.

ninky_2

EdInvestor wrote: »

http://www.guardian.co.uk/money/2009/oct/08/shared-appreciation-mortgage-class-action

Some victims may be caught by a timebar.The SAM mortgages work out at an interest rate of 35-40% a year. Not quite as bad as the Provy, but still pretty usurious.One wonders if the victims were ever shown comparison APRs.

how could they be shown equivalent aprs given no one knew for sure what house prices were doing? unless they were shown historical equivalents and told we don't know what will happen in the future.

gthector

HI All,

Does anyone have an update on this? As I think I understand there's a court case going on right now with RWP Solicitors which is supposed to be reaching a conclusion?

I'm enquiring for my girlfriends family who recently lost their Nan / Mum. I've read enough on the schemes to educationally make me an expert, but am just trying to find some more information on the legal challenge.

To pre-empt any posts on the validity of disputes, we're trying to ascertain the extent of the advice offered before the mortgage was agreed as well as who the advice was offered by. I completely understand that had property prices not jumped, their would likely not be any court cases, although I think it very significant that SAM's only lasted two years...

Many thanks for any information!

Gareth