More than 300 homeowners have been given the green light to sue Barclays and Bank of Scotland over mortgages which forced repayments as much as four times the cost of their properties.
The High Court yesterday granted a Group Litigation Order against the lenders over ‘SAMs', shared appreciation mortgages, thisismoney.co.uk reports. SAMs allowed borrowers to take out secured loans at a fixed rate or 0% interest, instead paying an additional fee on repayment of up to 75% of the increase in the value of the property. But rocketing house price rises between 1997 when the loans were first offered, and 2007, resulted in homeowners having to pay back an equivalent interest rate of 35-40%, leaving many trapped and unable to move house. On a £200,000 increase in property...
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