SAFE (Struggle Against Financial Exploitation Limited) and leading bank HBOS have met for a second time to discuss Shared Appreciation Mortgages (SAMs). Meeting with SAFE in London on September 25, HBOS representatives confirmed that they were reviewing whether a hardship scheme was a feasible option but stressed that there was no certainty that a mutually acceptable solution could be found. SAFE’s aim is to find a fair solution for customers poorly served by the1997-1998 SAM schemes.

The follow-up meeting held yesterday has come after a long period of lobbying by SAFE. SAFE is a not-for-profit organization, acting on behalf of its members, the SAM Group, who are locked into Shared Appreciation Mortgages sold by the Bank of Scotland (now HBOS) a decade ago. If a scheme were introduced it would be intended to bring relief to SAM customers who face particular hardship, although this may not solve the financial difficulties trapping most BoS SAM holders. The talks with HBOS follow the deal struck by SAFE with Barclays Bank (announced in June 2007) enabling fairer treatment of Barclays’ customers with similar Shared Appreciation Mortgages.

A date for a further meeting will be agreed in due course.

Speaking on behalf of SAFE, Elaine Williams said: “We are delighted that, after years of our lobbying the two banks who sold the SAMs back in the late 1990’s, finally we have entered into serious talks with HBOS. Discussions continue with HBOS which should bring hope to many of the SAM customers registered with SAFE who are suffering real hardship. This vindicates SAFE’s persistence with the banks on the SAM issue.” Elaine added: “Our fight goes on for all our members, until we have justice”.

Alan Keen MP, Vice-Chair of the All-Party Parliamentary Group Against Financial Exploitation, said: “The All-Party Group has worked hard to raise the profile of consumers who find themselves in financial difficulty, for whatever reason. I am encouraged that SAFE and HBOS have met again and continue to have productive discussions".

SAM holders who think they may be eligible for an eventual ‘Hardship Scheme’ should ring SAFE on 0208 630 9990.

Contacts:

SAFE – Elaine Williams, tel: 0208 630 9990; email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

              Robert Owen, tel: 01929 424 528; email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Or email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

HBOS – Paul Fincham, tel: 0207 574 8323 email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Notes for Editors:

• Shared Appreciation Mortgages were sold by Bank of Scotland (later renamed HBOS) from June 1997 to December 1998. They were sold by Barclays Bank from May to July 1998.
• The key feature of this type of mortgage was that in return for a zero rate, or very low rate, of interest, the bank would enjoy a percentage – of up to 75% – of the property’s increase in value over the duration of the loan, with the loan itself also remaining payable in full.
• In the decade since the SAM product was introduced, house prices grew at an unprecedented rate, provoking the situation that most house-holders are unable to move because they can not afford any reasonable property after redeeming the original loan and passing massive ‘appreciation’ to the bank.
• The Bank of Scotland arranged SAM loans with about 12,000 customers; Barclays had about 3,000 SAM customers. Most of these loans are still held, but a small number have since been redeemed, at very heavy cost to the original borrowers or their estate.
• SAFE (Struggle Against Financial Exploitation Limited) acts for sufferers from financial exploitation in several fields; through its SAM Committee it has worked for the cause of Shared Appreciation Mortgage holders throughout the UK since 2004.
• SAFE is also the Secretariat to the All-Party Parliamentary Group Against Financial Exploitation (chairman Lord Ahmed, vice-chair Alan Keen MP).