Repay/Pay Off Shared Appreciation Mortgage (SAM mortgage) loan?

penners324

Complaint to bank, then Ombudsman immediately for misselling.

Then contact a law firm mentioned on a few posts on MSE forum.

Get him to contact his MP as well. Questions about this scandal need raising in Parliament 

DB042

Edi81 said:

I always thought it was just Bank of Scotland and Barclays that offered SAMS. First I’ve heard of RBS offering the product. 

Apologies, I got confused between RBOS and BOS (didn't even realise they were separate entities).  For clarity the SAM is with Bank Of Scotland.

DB042

fwor said:

I can't see it ending well either.

DB042 said:

He is fine paying them back the original loan.  It's just the appreciation part he wants to avoid.

That's a bit like saying to your bank that you don't mind paying back the loan but you don't want to pay any of the interest.

He is fine paying back the loan AND the interest (which is listed separately on update letters he has received).  He only wants to see if he can avoid the shared appreciation part because he wants to leave the house to his daughter who lives with him so she can continue to live there after he is gone.

rjsdavis

DB042 said:

fwor said:

DB042 said:

Plus we can't currently find the original paperwork (he's not the best at organisation) to review it for him.  If / When we find it, we'll be sure to check for the redemption clauses.

I think you're looking at this the wrong way. The documentation is absolutely critical, and if he wants to get out of paying them what they say they are due, he/you need to find a copy of what he signed up to. You won't make any progress without that paperwork.

Has he tried contacting RBOS to ask for a copy of the contract documentation?

He is fine paying them back the original loan.  It's just the appreciation part he wants to avoid.
Good idea though, I will suggest that he contact them for a copy of the paperwork, so we can review it. Thanks.

I'm afraid this is a nonsense, and you simply cannot pay back the loan and not the interest (or shared appreciation in this case). 

You have two choices: 

1: Pay back the full redemption value, including the shared appreciation element - which is hugely penal. You'll find that the repayment due is probably a large, six-figure sum. 

2: Sue the bank as the contract is unfair. A large firm of city lawyers have now successfully sued both Barclays and BOS (not RBOS) and reach settlements for all of their clients. New groups are up and running right now in respect of both banks.