Shared Appreciation Mortgage

TheTrevster

I have just found out that the house my mother was living in before she died had a Shared Appreciation Mortgage for £16,000 on it. and Royal Bank of Scotland want a payment of £176,000!! That is 11 times the original amount borrowed. I have seen that RBS is in court this month as some customers have decided to sue. There are thousands of people out there who have been miss-sold these mortgages, is there anything that can be done about this outrageous case of greed?

Flugelhorn

probably see what the outcome of the cases is ?

There were quite a lot of cases back in 2008/9 - https://www.theguardian.com/money/2009/oct/08/shared-appreciation-mortgage-class-action

Nasqueron

TheTrevster said:

I have just found out that the house my mother was living in before she died had a Shared Appreciation Mortgage for £16,000 on it. and Royal Bank of Scotland want a payment of £176,000!! That is 11 times the original amount borrowed. I have seen that RBS is in court this month as some customers have decided to sue. There are thousands of people out there who have been miss-sold these mortgages, is there anything that can be done about this outrageous case of greed?

They weren't miss-sold, people signed up for them as equity release knowing they would get money they couldn't get normally and it wouldn't be repayable until death - with the person retaining the right to live in the house until then. This was fully documented when they signed up for it, indeed, it was required that you took financial advice first and borrowers were advised by their solicitors on taking this out. It's very much buyers remorse run up by people who are unhappy they need to pay what they agreed to.

My condolences on your loss but without trying to be flippant, given your mother has passed and you only found out after the event, how can you argue she didn't know about this or want it? Was she of sound mind when she took it out 24+ years ago? These were documented in the media as well a few years after the product was withdrawn - Which in August 2003, Saga Magazine in September 2006 and August 2007, BBC Inside Out September 2014

You will have to wait for the court case to end and see what the outcome is

Edi81

Shared appreciation was only offered by Bank of Scotland and Barclays. 

I suggest you reread the paper work and determine which company it was.