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Shared Appreciation Mortgages (S.A.M.)
Les_Skeet
Posts: 2 Newbie
In October 1997, Bank of Scotland valued our newish house @ £150k. They made an advance of (up to) 25% i.e. £37.5k. for which no interest or principal repayment was required until we sold the property. In return they would require 75% of any improvement in value.
The house is now valued at c, £310k and if we were to repay today, the sum would be: (310 - 150) = 160 x 75% = £120k, plus original advance of £37.5k, leaving us an equity of £152.5k only.
I appreciate the fact that we signed a mortgage agreement at that time but a simple interest rate of more than 30% per annum for almost ten years is a hefty amount in any language! No one could foretell a doubling of house values in such a relatively short period.
Are there similar problems elsewhere? Is there any foundation for proper argument against such an extortionate amount, please?
The house is now valued at c, £310k and if we were to repay today, the sum would be: (310 - 150) = 160 x 75% = £120k, plus original advance of £37.5k, leaving us an equity of £152.5k only.
I appreciate the fact that we signed a mortgage agreement at that time but a simple interest rate of more than 30% per annum for almost ten years is a hefty amount in any language! No one could foretell a doubling of house values in such a relatively short period.
Are there similar problems elsewhere? Is there any foundation for proper argument against such an extortionate amount, please?
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already posted http://forums.moneysavingexpert.com/showthread.html?t=259326
best not have 2 threadsAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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