SAM Mortgage - Legal Action

Belcheee

Hi,
My parents have a SAM mortgage. I have read about legal action being taken by "Teacher Stern" solicitors to get a fairer interest rate for these loans, which would save my parents tens of thousands on the repayment. I believe the rough interest rate they are currently looking at is a few hundred percent.

The solicitor is asking for £500 upfront and there is mention of additional costs further down the line as the case moves along, but no indication of how much that could be.

The solicitor claims they have an insurance policy to cover claimants for any future legal costs "above a threshold", but again no details on that.

I'm obviously very wary about this as it's asking for £500 with little information. I believe they already have about 130 people signed up.

I was just wondering what people's opinions on this are, and if anyone has had similar experience of other legal actions.

I wouldn't even consider this if it wasn't for the fact that it would make a huge difference to my parents potentially allowing them a much needed downsize due to their age.
But it does seem "too good to be true" which is usually the case.

Thanks in advance.

Thrugelmir

Belcheee wrote: »

Hi,
My parents have a SAM mortgage. I have read about legal action being taken by "Teacher Stern" solicitors to get a fairer interest rate for these loans, which would save my parents tens of thousands on the repayment. I believe the rough interest rate they are currently looking at is a few hundred percent.

The solicitor is asking for £500 upfront and there is mention of additional costs further down the line as the case moves along, but no indication of how much that could be.

The solicitor claims they have an insurance policy to cover claimants for any future legal costs "above a threshold", but again no details on that.

I'm obviously very wary about this as it's asking for £500 with little information. I believe they already have about 130 people signed up.

I was just wondering what people's opinions on this are, and if anyone has had similar experience of other legal actions.

I wouldn't even consider this if it wasn't for the fact that it would make a huge difference to my parents potentially allowing them a much needed downsize due to their age.
But it does seem "too good to be true" which is usually the case.

Thanks in advance.

Been rumbling for some years. As time passes assume that the number of litigants is diminishing. Given that such mortgages were granted in the 90's. Making legal action less and less probable.

minimike2

I am sure that there was already a prescient set with a previous lawsuit which was not successful. Ask yourself, if the solicitor is so confident of a win, why are they asking for such a significant up front fee?

poppy10_2

Belcheee wrote: »

The solicitor is asking for £500 upfront and there is mention of additional costs further down the line as the case moves along, but no indication of how much that could be.

The solicitor claims they have an insurance policy to cover claimants for any future legal costs "above a threshold", but again no details on that.

Ambulance chasers. Avoid.


SAMs weren't mis-sold on the whole. This has been to court countless times and there's not been any successful mis-selling claim as far as I know. Don't throw good money after bad trying to get compo

antrobus

minimike2 wrote: »

I am sure that there was already a prescient set with a previous lawsuit which was not successful. Ask yourself, if the solicitor is so confident of a win, why are they asking for such a significant up front fee?

The Shared Appreciation Mortgage Action Group. 300 people paid £5,000 each (£1.5m), the case crashed and burned in 2009, leaving the 300 liable for the banks' costs. I believe the 300 were then obliged to agree not to take any further action in return for not being chased for these costs.

Mikee1056

My Mother is another victim of the Bank of Scotland Shared Appreciation Mortgage. (SAM) In her case, it was my sister that witnessed my mother signing the forms, and my sister’s husband was the advisor who sold it to her.

I have since read that a family member should not serve as a witness to a legal document . I wonder if anyone on this forum can confirm this??

If this is true, would my Mother have any additional rights with regards to the contract? She borrowed £20,000 and when she passes, will have to pay back £215,000 from her property. (current values)
She is completely unaware of how much she owes to the bank. Even her son in law who sold her the policy, thinks she only has to pay back 25% of the increase in value of her flat instead of, what we understand now is 75%.



I would greatly appreciate any advice in this matter.

davidmcn

Mikee1056 wrote: »

My Mother is another victim of the Bank of Scotland Shared Appreciation Mortgage. (SAM) In her case, it was my sister that witnessed my mother signing the forms, and my sister’s husband was the advisor who sold it to her.

I have since read that a family member should not serve as a witness to a legal document . I wonder if anyone on this forum can confirm this??

If this is true, would my Mother have any additional rights with regards to the contract? She borrowed £20,000 and when she passes, will have to pay back £215,000 from her property. (current values)
She is completely unaware of how much she owes to the bank. Even her son in law who sold her the policy, thinks she only has to pay back 25% of the increase in value of her flat instead of, what we understand now is 75%.
I would greatly appreciate any advice in this matter.

There is no general principle that a family member can't be a witness (though it's never wise to have a witness who might have an interest in what's being signed). Unless your mother is denying that she signed, I can't see the relevance.