Banks sued over 'unfair' loans that let people get rich
Barclays and Bank of Scotland are being sued for selling "shared appreciation mortgages" (Sams) back in 1996-1998.
These loans let older homeowners borrow up to 25% of their home's value with no repayments during the lifetime of the loan—but when the house is sold or the owner passes away, the banks get back their money plus a big chunk of any increase in property value.
With UK house prices soaring since then, some borrowers now owe way more than they borrowed and can't pay it back.
Legal fight over whether these deals were fair is ongoing
Nearly 80 people, backed by law firm Teacher Stern, claim these mortgages were "unfair" under consumer protection laws.
For example, Annie Galbraith now owes almost £679,000 on a loan that started at just £33,750 because her home's value shot up.
While both banks have settled some cases quietly, they insist customers were warned about repayment risks and encourage anyone affected to seek financial advice.
The legal fight over whether these deals were fair is still ongoing.