Shared Appreciation Mortgage

JoeK_3

Ian_W wrote: »

Kick one adviser - and the rest limp! Talk about stick together right or wrong.

The ever so Mr Helpful has largely been anything but since he joined a month ago. He was so helpful in suggesting I had my head up my @rse when posting on another thread where I suggested an OP should consider equity release - the post was subsequently deleted. But it may interest you MortgageMamma and JoeK that you both suggested the same - as did 2 other brokers - so do check the position of your heads cos Mr Helpful probably thinks that's where yours are too!

To the OP - the only genuinely helpful post is the link posted by EdInvestor to the Shared Appreciation Mortgage Action Group. The main site is at:
http://www.samvic.co.uk/
I'm sorry I don't know anything about them myself but that's a good starting point.

Remember you didn't get that steer from one of the many helpful advisers on here!!!

This forum is about opinions, helping people and not trying to ram your own thoughts down other peoples throats and neither is it about insulting others in a hurtful and unprofessional way.

We should be more considerate and diplomatic to others when pointing out the errors of their ways and maybe, just maybe, everyone will benefit.

Thank you for your comments.

JoeK

doitmyself

YK07 wrote: »

Hi there

I've just discovered that my mum (who sadly died in January) had an SAM - are there any tips, laws, loopholes etc to try to get out of this please, we're absolutely horrified.

Many thanks

Thanks to everyone for the various insights and for bringing this back to the top. Did anyone answer the question?
I don't know much about ER but I saw the program on tv the other night. In response to the OP I guess the answer is no, techically at least but to those who know more about these things, what can this person, who's already suffered enough this year do to mitigate their loss further?

EdInvestor

what can this person, who's already suffered enough this year do to mitigate their loss further?

All one can suggest is that s/he study the material on the Samvic site to see if anything may be helpful, but sadly, experience suggests that misselling complaints are unlikely to be successful.

Ian_W

JoeK wrote: »

This forum is about opinions, helping people and not trying to ram your own thoughts down other peoples throats and neither is it about insulting others in a hurtful and unprofessional way.

We should be more considerate and diplomatic to others when pointing out the errors of their ways and maybe, just maybe, everyone will benefit.

Thank you for your comments.

JoeK

Couldn't agree more Joe. :beer:

This is a consumer site - whilst personally I welcome the input of pros as I'm sure do those posting with probs but it ain't an "ask the expert" forum as some with signatures seem to think - and they don't have carte-blanch to try to troll off the forum other posters with other points of view.

Anyway my last word as I'm off to Cornwall for a weeks holiday, see ya when I get back.

Mr_helpful

Well at last Edinvestor has posted what she should have said first.
We dont know if it is a Bank of Scotland one but if it is as far as I am aware they tied the sales process up pretty well so miss selling complaint successes are rather limited.

HelpWhereIcan

The only problem (as I see it) with your post Ed was simply that it assumes that the SAM was mis-sold but neither you nor the OP know what the situation was that led this lady to take a SAM out at the time.

When I first came into Financial Services in 1995 the first furore about Equity Release mortgages (Home Income Plans at the time) had started and SAMs were became popular in 97 ish so I remember a lot of the discussion in the industry about how to ensure that SAMs did not become tarred with the same brush.

The literature produced at the time by Barclays and Bank of Scotland was of a good standard and did explain exactly how it worked - what people forget now is that the housing market was so different and the lending options available to people on low incomes so much more scarce on the ground.

No-one predicted what would happen to property values between 99 and now, and I dare say that you would not be so convinced every SAM was mis-sold if house price increases had been below mortgage interest rates.

The only successes I have been aware of have been those that have been pursued under the Consumer Credit Act meaning that the original loan amount was below £25000.

I also have to say that I had a client at the time who went to Bank of Scotland to get a SAM (independantly of me) and when I discussed it with her she told me that her kids would get whatever cash was left in the bank (I was looking at IHT planning) and if there was anything left in the house for them it was a bonus. So I have to back up Mr Helpful's contention that many people saw SAMs as an alternative to Equity Release with similar risk of losing the full value of their home.

In fact,

shared appreciation mortgage schemes were included as one of the 231 Millennium Products unveiled by the then Trade and Industry Secretary, Peter Mandelson in 1998 draws attention to his comments at the launch `Millennium Products are cutting edge, pioneering and innovative. They demonstrate British genius and expertise, highlighting our excellence in information technology, industry and science'; further notes that they certainly highlighted the City'sbrilliance at creating a scheme

https://www.cml.org.uk/cml/filegrab/01-2006.pdf?ref=5093

I am sorry to hear that the OP feels that their mother was mis-sold but would have to say that I am not aware of any

tips, laws, loopholes etc to try to get out of this

other than possibly using the consumer credit act to claim that it equates to unfair interest.

Mr_helpful

Thanks Help where I can.
I only ever sold one SAM to a person over 65 yrs old who was just starting a brand new company. Could not show income and would not get touched by any other lender at that time. He was quite happy but some time later after I left the firm there was a complaint from his partner. She was adament I hadnt told her anything about it or recommended that independent legal advice be taken. Fortunately in the file was her signature on the fact find and a letter acknowledging the quote and brochures had been read and understood by both of them and also the fact that I had advised her to seek advice from an independent solicitor. Case was dismissed. I am only too aware of the need to have proper documentation with sales these days as the thought of some easy money does tend to make some peoples memory very selective.

EdInvestor

HelpWhereIcan wrote: »

The only problem (as I see it) with your post Ed was simply that it assumes that the SAM was mis-sold

No it doesnt. As I say, misselling has not been found with SAMs, complaints have not been upheld.

The literature produced at the time by Barclays and Bank of Scotland was of a good standard and did explain exactly how it worked... No-one predicted what would happen to property values between 99 and now, and I dare say that you would not be so convinced every SAM was mis-sold if house price increases had been below mortgage interest rates.

Quite so.

My comments were rather a clarification of Mr Helpful's remarks which seemed to suggest that SAM mortgages and modern equity release mortgages were much the same thing.Of course, there are major differences.

MortgageMamma

Ian_W wrote: »

Kick one adviser - and the rest limp! Talk about stick together right or wrong.

Please clarify again EXACTLY what Mr Helpful has said that is wrong?

The ever so Mr Helpful has largely been anything but since he joined a month ago.

Thats funny you shoudl say that, as on occassion he has gone against what the rest of the brokers say and gone out of his way to help forum users he seems to be valued by the forum members AND other advisers.

He was so helpful in suggesting I had my head up my @rse

not possible if you are talking out of it, his mistake then

when posting on another thread where I suggested an OP should consider equity release - the post was subsequently deleted. But it may interest you MortgageMamma and JoeK that you both suggested the same - as did 2 other brokers - so do check the position of your heads cos Mr Helpful probably thinks that's where yours are too!

I admit freely that I occassionally insert my head into my !!!! - thats my priviledge to do so. I am human after all, and its warm and peaceful in there.

To the OP - the only genuinely helpful post is the link posted by EdInvestor to the Shared Appreciation Mortgage Action Group. The main site is at:
http://www.samvic.co.uk/

I'm sorry I don't know anything about them myself but that's a good starting point.

So what are you doing on the thread?!

Remember you didn't get that steer from one of the many helpful advisers on here!!!

No, just a wannabe one without the qualifications.

Enjoy your time in cornwall.

Mr_helpful

"To the OP - the only genuinely helpful post is the link posted by EdInvestor to the Shared Appreciation Mortgage Action Group. The main site is at:
http://www.samvic.co.uk/
I'm sorry I don't know anything about them myself but that's a good starting point. "

So freely admitting you havent a clue what you are talking about how would you know whether it is good advice or not

Remember you didn't get that steer from one of the many helpful advisers on here!!!

No because most complaints fail which is bit of a waste of time to tha OP

Do enjoy Cornwall its a very nice place I only worry that with your knowledge you may end up in Skegness