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Case 15

SAMs Case Stories

Mugged My Parents

Hello and I hope you can help us.

My Father passed away last Sunday and this week

I have been trying to sort out his affairs. My mother, aged 79, desperately wants to leave their bungalow where she has nursed him through his fight with cancer for the last 18 months. She would like to move to a ground floor flat which would cost Ł200,000.

He borrowed Ł40,500 on the 9th April 1998 from the Bank of Scotland under the SAM 06 scheme.

The base price of the bungalow was Ł165,000 and it has been recently valued at approx Ł330,000.

The Share of appreciation was 73.63% so to pay the loan back will cost approx Ł162,000. This does not leave enough for my mother to be able to move.

I am amazed that a bank is allowed to basically mug old age pensioners. These loans must have been miss-represented or miss-sold.
Why was there not a cap on the amount to be repaid?
How can I help?