Families say shared appreciation mortgages taken out in the 1990s are now causing serious hardship.
Families have spoken of their shock after they discovered relatives agreed to shared appreciation mortgages as a way of releasing some of the equity in their homes.
Three more families whose relatives took out five-figure loans have now said they have also been left with six-figure repayments.Louise Potterton said her father-in-law was left filled with regret at taking out a SAM right up until he died last year."He'd paid his mortgage off by then and he just wanted some money out of the house," Louise said.At the time their four-bedroom house in Grantham, Lincolnshire, was thought to be worth about £78,000.
"We had the house valued, put it up for sale, got a buyer and went back and said we need the redemption figure and it came back at £147,510.Barclays SAM hardship scheme Veronica said they offered to help with the cost of moving her parents into assisted living but it was still not affordable. "What appreciation mortgages did was offer a much lower initial interest rate - sometimes it was even as low as 0%.""The best thing you can do is, first of all read the terms and conditions," he said.
"They had access to much wider ranging information than the borrowers - they also had particular expertise in this field," she said.
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