Another type of problem

My wife and I recently tried to raise some more money to have a conservatory. B.o.S. will not lend any more under the S A M system; but would lend with repayments, Norwich Union flatly refused to lend under their equity release scheme, because obviuosly we have hardly any share of the equity.

Homeless

My widowed mother (who is 72) has a SAM with Royal Bank of Scotland. She is in a position where she cannot move because she simply will not have enough equity to buy elsewhere. She lives in the SE of England and property prices have risen well beyond her original house valuation.

Usury?

Approx 4 years ago I obtained a SAMS loan against my property with Barclays. At that time my home was valued at Ł92,500 and I obtained a Ł20,000 loan. Property in my area has escalated to the point where my home is now valued at Ł235,000. If I were to sell today at the valued price Barclays would get a total of Ł128,000 plus the original loan of Ł20,00. In short Barclays would realise over 500% over five years on a loan of Ł20,000.

My late father-in-law passed away at Christmas.

We are in the same boat with Barclays Bank. He took out the SAM with them in 1998.

He borrowed Ł16,250 (25% of the then value of his house) and they are now demanding Ł63,000 an increase of 287.5% over 4 years !