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More "misery" Caused By Hpi And Financial Innovation

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Bournemouth Local Rag

"Despair for couple left ‘trapped’ in own home

By Sharen Green

CAN'T AFFORD TO MOVE: Ian and Mary Berrett outside the West Moors home on which they took an equity release loan

A RETIRED couple trapped in a mortgage nightmare are keen to hear from others in the same boat.

Ian and Mary Berrett entered into a Shared Appreciation Scheme with the Bank of Scotland eight years ago.

The deal meant they would no longer have to shell out for their remaining mortgage while they could borrow £30,000 against the value of their West Moors house.

The downside was that the bank was entitled to 75 per cent of any increase in the value of the house when the time came to sell - usually after customers' deaths.

Retired probation officer Ian, 76, and former student landlady Mary, 73, decided to move nearer to Gillingham where two of their children and grandchildren live.

But they were horrified to realise that they are stuck.

If they sold, most of the value of their Pinehurst Road bungalow would have to go to the Bank of Scotland while the money they would be left with would not buy them a house, they say.

Although they signed the forms to say they had understood the terms of the deal and had discussed it with their children, the couple now say they did not fully understand the implications.

"We can't afford to move - we're trapped," said Mrs Berrett.

They have contacted the bank, the financial ombudsman and their MP Christopher Chope, but the Bank of Scotland has refused to let them off any of the sum and an investigation has exonerated the independent financial adviser involved in the case.

"We believe there must be many people in the same boat and we would like to hear from them," Mrs Berrett said.

Hazel Walker, chief officer of Age Concern Bournemouth, said there were good equity release schemes about and it could be a good way for people to realise some of the value of their homes.

"But you should take legal advice, read the small print and be really clear about what you are signing," she said.

The Daily Echo contacted the Bank of Scotland for a comment but they hadn't responded by the time we went to press."

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I just love it when people take advantage of cheap loans and then whine about the downside...

It seems more like a ripoff to me think their kids can kiss goodbye to any good inheritance also.

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It seems more like a ripoff to me

Why? The bank traded them a cut in their mortgage for 75% of any appreciation. How is that a 'ripoff'?

The reality is these people didn't want to pay their mortgage, so they took the bank's offer: now they want to whine about it. Why should we have any sympathy for people who want the benefits of a 'free' mortgage and won't pay the costs? They're absolutely symptomatic of the problems in this country... people want everything but don't think they should have to pay for it.

Edited by MarkG

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Why do our older generation fall for this rubbish? If it's not stories like this it's storiess about handing over their life savings to a conman or beleiving they have won the spanish lottery even though they never entered it and losing their savings that way.

Some of them fought in a World War for gods sake. You'd think that would have struck a chord with them that mankind is inherently evil, that if a deal sounds too good to be true it is, and that basically it's everyman for himself out there.

Breaks my heart!

Edited by Jimothy

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Some of them fought in a World War for gods sake. You'd think that would have struck a chord with them that mankind is inherently evil, that if a deal sounds too good to be true it is, and that basically it's everyman for himself out there.

Breaks my heart!

I think you mean that they should be aware of the evil that humankind is capable of.

It might be that they took the message of the war to be that "good always triumphs over evil". When of course it could equally read "history is always written by the winners".

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Wasn't all this when they were out spending the 30k now was it? Honestly, I have no sympathy.

Being old doesn't necessarily make you a nice person either, and yet that seems to be the force of the appeal here, 'They are old, so lets write this off'. No way. They desreve about the same sympathy as MEWers who find it has all went the way of the pear.

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It seems more like a ripoff to me think their kids can kiss goodbye to any good inheritance also.

But surely there's going to be an HPC so the bank is taking a guaranteed loss with no chance of upside. <_<

On a brighter note, they seems not only wilfully stupid, but culpably greedy too. Rather like that BBC blogger who is back with her "it's everyone's fault but mine" school of philosophy.

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I just find it interesting largely because it is HPI that has shafted them, not negative equity.

HPI shafting new demographic sectors in new and interesting ways. I wonder how many of these racy little products are out there? A real dog's dinner if I might say so - a product designed to help keep the bubble inflated, but one that more obviously puts the mortgage holder into trouble if the aim is acheived and HPI continues.

Almost like a bizarre inverse copy of negative equity but with largely the same result - can't move, keep paying the mortgage. I'll wager the lenders don't take 75% of the downside. So, in taking these things out, you have to be sure that you never want to move house again.

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If you read the article again Fancy, you'll see they didn't HAVE to pay the remaining morgage. They just thought they saw a sweet deal. Ermm...no.

Banks, are Banks, are Banks. Always have been, always will be. No matter how warm and fluffy the visiting rep is.

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If you read the article again Fancy, you'll see they didn't HAVE to pay the remaining morgage. They just thought they saw a sweet deal. Ermm...no.

Banks, are Banks, are Banks. Always have been, always will be. No matter how warm and fluffy the visiting rep is.

my apologies - a dog's dinner of a post too then - although I think the analogy still loosely applies in this case. In any event, there are many of these naughty little loans floating about where there is still mortgage outstanding, these should create some heartache and help the HPC along when it all starts to unwind...

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But surely there's going to be an HPC so the bank is taking a guaranteed loss with no chance of upside. <_<

On a brighter note, they seems not only wilfully stupid, but culpably greedy too. Rather like that BBC blogger who is back with her "it's everyone's fault but mine" school of philosophy.

But at least in both cases their greed and stupidity won't actually be rewarded... I hope... :unsure:

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Dont bet on it Spartacus :(

Remember that Watchdog feature a while back about the fat knacker who keeled over, and the life insurance wouldn't pay out because the weight on the application form was that of a mildly overweight fellow, but the weight of the corpse a mere few months later was like something off of a Seaborne Tonnage chart? Sentiment meant they had to pay up, despite the fact he was a pie eater who told naughties on his form. Amazing what some mood music and some soft focus shot children can do on the TV.

Dont underestimate the bleeding heart that is the UK today even for a moment would be the lesson here I think..

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Dont bet on it Spartacus :(

Remember that Watchdog feature a while back about the fat knacker who keeled over, and the life insurance wouldn't pay out because the weight on the application form was that of a mildly overweight fellow, but the weight of the corpse a mere few months later was like something off of a Seaborne Tonnage chart? Sentiment meant they had to pay up, despite the fact he was a pie eater who told naughties on his form. Amazing what some mood music and some soft focus shot children can do on the TV.

Dont underestimate the bleeding heart that is the UK today even for a moment would be the lesson here I think..

Not too many bleeding hearts on this site... :ph34r:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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