Shared appreciation mortgages, briefly available in the mid-1990s, are hitting the headlines again.
Capable of raising finance for the cash-poor and asset- rich, particularly those in or near retirement, Sams have been criticised for being expensive and inflexible. A recent change in the law raises the possibility that borrowers can go to court to get out of these contracts and recover their losses.
Shared appreciation mortgages, briefly available in the mid-1990s, are hitting the headlines again.

The ‘Good News’ is ;

The Government appears to have listened to SAFE at our various meetings in Westminster, culminating at lasts months AGM of the APPGAFE, (All Party Parliamentary Group Against Financial Exploitation, to which SAFE is the Secretariat, see last months minutes at www.safe-online.org ).

SAFE has been pressing for legislation to protect homeowners who fall behind with their repayments due to tighter lending for many months and now the Government has announced a ; New Pre Action Protocol Launched for Mortgage Possession Cases.

SAFE, Secretariat to the APPG Against Financial Exploitation, has arranged a meeting on Tuesday 18th November in Committee Room 14 at 2-30 pm in the Palace of Westminster to explain to MPs the gravity of the Legal Opinion, which was sponsored by SAFE/ SAMAG to investigate the legality of Shared Appreciation Mortgages. We are inviting our members to attend the meeting in order to lobby their MPs, we will also give a progress report and take questions.   

A Warwickshire man has told Mercia he feels trapped in his own home because if he ever moves, he will have to pay his bank a fortune. Guy Wilson from Leamington is taking legal action against the Halifax Bank of Scotland after he was sold a Shared Appreciation Mortgage ten years ago. INTERVIEW: GUY WILSON, CUSTOMER - I would have to pay back a total of about ?300,000. Presenter - Halifax Bank of Scotland have refused to comment.

Guardian Unlimited, September 30, 2008

Borrowers could sue over equity release loans

Thousands of older homeowners who took out shared appreciation mortgages (Sams) could take Barclays and HBOS to court over unfair terms following a change in the law, it emerged today.
The mortgages, which were offered by the Bank of Scotland and Barclays in the 1990s, were designed to allow homeowners to release equity from their properties but some have been left owing many thousands of pounds to the banks in return for relatively small loans.

5 pm, Tuesday 21 October in Room Q, Portcullis House

Lord Ahmed opened the Meeting by resigning, but of course he was immediately asked to re-fill the position by Elaine Williams, which was seconded by Alan Keen MP (Vice Chairman) and carried unanimously by all those present.     Likewise the remainder of the APPG Committee were re-elected.