fellow Posted April 3 Share Posted April 3 (edited) I’m 87 and my mortgage means I’ll owe my bank £200k when I sell my home https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/mortgage-means-owe-bank-sell-home-2968116 Quote Brian Neville was 'desperate' when he took on a shared appreciation mortgage in the late 1990s. Now he regrets it. Brian Neville took out a mortgage for £20,000 in 1997, on a small bungalow in Poole, Dorset. Now, aged 87, he feels he cannot sell the property, believing if he did, he may owe his bank ten times this amount. Under the terms of Brian’s mortgage, if he sold his home, he would likely owe his lender, Bank of Scotland, around £200,000 – or ten times his initial mortgage size – from the sale. More than a quarter of a century later, he feels “trapped.” The type of mortgage he took out was a shared appreciation mortgage (SAM), which was a type of equity release mortgage sold in the late 90s. Under this type of loan, the borrower releases equity in their home – in this case £20,000 – and gets a lower interest rate on the repayments. In return though, they owe the bank they borrowed from a share of the increase in their home’s value. Brian bought the property for around £84,000 in 1997, after financial issues left him having to downsize. But he describes the process of getting the mortgage as “haphazard” and says he felt rushed into taking it by the advisor, who told him this type of mortgage would be removed from sale very soon. “Frankly I was desperate. I had absolutely nothing – no assets except the house – and so I believed this was my only choice,” he told i. He later found out that he would owe his lender, Bank of Scotland, 75 per cent of the profits on the property’s appreciation of value, which he said he had no idea about when he signed, as he thought it was 25 per cent. “I rang Bank of Scotland and was essentially told this is what I’d signed for – but at the time I just really needed the money”, he added. If he were to sell the property now, he believes he would get around £350,000 from the sale, but under the terms of the mortgage, he would owe £200,000 of that money to his bank. Edited April 3 by fellow Quote Link to comment Share on other sites More sharing options...
Staffsknot Posted April 3 Share Posted April 3 16 minutes ago, fellow said: I’m 87 and my mortgage means I’ll owe my bank £200k when I sell my home https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/mortgage-means-owe-bank-sell-home-2968116 This is one of those moments where you look and say - I don't think you are going to get any sympathy there fella. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 3 Share Posted April 3 Perhaps he should apply for compensation or a bailout. Quote Link to comment Share on other sites More sharing options...
PeanutButter Posted April 3 Share Posted April 3 27 years to pay off 20k lol Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 3 Share Posted April 3 11 minutes ago, PeanutButter said: 27 years to pay off 20k lol He may as well have rented. oh, wait.. Quote Link to comment Share on other sites More sharing options...
winkie Posted April 3 Share Posted April 3 The moral of the story when someone needs the money they will often sign anything to pay what is necessary to get the money. Quote Link to comment Share on other sites More sharing options...
LetsBuild Posted April 3 Share Posted April 3 So his original £64k investment is now £150k minus the cost of a £20k loan repayment and however much it cost to service for 27 years and no rent - am I right? What is he moaning about? Quote Link to comment Share on other sites More sharing options...
msi Posted April 3 Share Posted April 3 Oh look, a boomer with compo face looking for a bailout. F*** him. Quote Link to comment Share on other sites More sharing options...
Nick Cash Posted April 3 Share Posted April 3 10 minutes ago, msi said: Oh look, a boomer with compo face looking for a bailout. F*** him. Silent generation. Does that make a difference? Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted April 3 Share Posted April 3 29 minutes ago, msi said: Oh look, a boomer with compo face looking for a bailout. F*** him. Such hatred! Were you sexually abused by an elderly pervert when you were a child? Or are you just an ageist arse? It's people like you that made the SNP introduce new laws (that I don't agree with) to shut you up! Quote Link to comment Share on other sites More sharing options...
msi Posted April 3 Share Posted April 3 4 minutes ago, Bruce Banner said: Such hatred! Were you sexually abused by an elderly pervert when you were a child? Or are you just an ageist arse? No. I'm an ar*e against self entitled tw*ts that think they are due compo because they can't make their own life decisions. Strange how you complain against everyone else apart from said boomer demographic... ...are you an self entitled elderly pervert tw*t? Quote Link to comment Share on other sites More sharing options...
Frankie Teardrop Posted April 3 Share Posted April 3 Does it really matter what you owe the bank at that age? I guess it matters for the dependants hoping for a big payout... Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted April 3 Share Posted April 3 (edited) 14 minutes ago, msi said: No. I'm an ar*e against self entitled tw*ts that think they are due compo because they can't make their own life decisions. Strange how you complain against everyone else apart from said boomer demographic... ...are you an self entitled elderly pervert tw*t? To the best of my knowledge, I have never compartmentalised any generation. Individuals, though, are fair game and you are an ageist arse! Edited April 3 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
winkie Posted April 3 Share Posted April 3 (edited) 19 minutes ago, Frankie Teardrop said: Does it really matter what you owe the bank at that age? I guess it matters for the dependants hoping for a big payout... Exactly no difference to renting at that age.......millions do, bank, landlord, council or care home......born with nothing, die with nothing, trying to stay as healthy as possible between the two dates. Edited April 3 by winkie Quote Link to comment Share on other sites More sharing options...
wighty Posted April 3 Share Posted April 3 He clears gross £65,000 (350-85-200). Lower interest rate on his repayments over 27 years. Better than renting for that time. Did he not manage to pay off the £20, 000 mortgage over that time?. Is the payment to bank based on when the mortgage is cleared or the house sold, whichever the later?. Quote Link to comment Share on other sites More sharing options...
70PC Posted April 3 Share Posted April 3 2 hours ago, winkie said: The moral of the story when someone needs the money they will often sign anything to pay what is necessary to get the money. Very true and it only needs a sharp mortgage salesman with no soul to spot an opportunity. Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted April 3 Share Posted April 3 This thread has stayed classy! The guy is 87 - so why does he care? Be grateful you have lived six years longer than men of his generation. He has also lived in a bungalow in a nice area like Poole - and his home is worth £270k more than he paid for it. Could be a lot worse - he could have bought a bungalow in Hartlepool in 1997! Quote Link to comment Share on other sites More sharing options...
Scorchio Posted April 3 Share Posted April 3 Reminds me of this to be honest: Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted April 3 Share Posted April 3 (edited) 9 minutes ago, Scorchio said: Reminds me of this to be honest: I wonder how much the Sunday Sport paid for that exclusive. I was going to make a joke about his post eventually arriving at its intended location from the Royal Mail in a brown envelope!! But then decided against it. Edited April 3 by MARTINX9 Quote Link to comment Share on other sites More sharing options...
frederico Posted April 3 Share Posted April 3 Brian isn’t very good with money is he Quote Link to comment Share on other sites More sharing options...
MARTINX9 Posted April 3 Share Posted April 3 14 minutes ago, frederico said: Brian isn’t very good with money is he He has made £264k from sitting on his backside on his settee for 25 years in Poole - so much easier than working for it! A nurse would have to work and save lives for a decade after tax to make that. Quote Link to comment Share on other sites More sharing options...
HowMuch! Posted April 3 Share Posted April 3 14 minutes ago, MARTINX9 said: He has made £264k from sitting on his backside on his settee for 25 years in Poole - so much easier than working for it! A nurse would have to work and save lives for a decade after tax to make that. Or go on long term sick from NHS job and moonlight doing private care work. Quote Link to comment Share on other sites More sharing options...
Hullabaloo82 Posted April 3 Share Posted April 3 Guessing at his age it's more about having something to pass on to the kids and grandkids who've probably been expecting a share of that £350k when he dies. I get that it's disappointing but it is what it is. If he thinks he was mis-sold, take it up with the regulator, otherwise not a lot anyone can do. Quote Link to comment Share on other sites More sharing options...
Nick Cash Posted April 3 Share Posted April 3 6 hours ago, msi said: No. I'm an ar*e against self entitled tw*ts that think they are due compo because they can't make their own life decisions. Strange how you complain against everyone else apart from said boomer demographic... ...are you an self entitled elderly pervert tw*t? Why the need to claim he was a boomer? Quote Link to comment Share on other sites More sharing options...
Stewy Posted April 4 Share Posted April 4 9 hours ago, Nick Cash said: Why the need to claim he was a boomer? Standard boomer jealousy here. Quote Link to comment Share on other sites More sharing options...
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