Friday, October 09, 2009

Homeowners set to sue banks over low interest loans - Business News, Business - The Independent

Homeowners set to sue banks over low interest loans - Business News, Business - The Independent: "Thousands of holders of controversial shared appreciation mortgages (SAMs) have been told they can club together to take on the banks that sold them in court in a US-style class action.

The schemes saw Barclays and Bank of Scotland offering low – or zero – interest loans on homes while taking up to 75 per cent of the increase in value of those homes when the mortgages were repaid. They were hugely popular when sold in 1997 and 1998 before the property boom got under way. Now, however, those who took them out often find themselves trapped in their homes and unable to move."

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