The Tremendous Overpayment on the Mortgage Deals

Many people who took out a mortgage a couple of years ago are now forced to pay back several times more, because of the property rise in value. In the 90-s HBOS and Barclays sold Shared Appreciation Mortgages which are no longer available. Shared Appreciation Mortgages implied that the borrower must pay both the loan and extra 75 per cent of the property's rise in value. Mrs Honey-James, an elderly woman of 87, was among those who took out   Shared Appreciation Mortgage. In 1998 the price of her home was estimated at £185,000, but now it is valued at £465,000. If the house is sold out, practically all the money will cover the expenses on the rise of value.  Mrs Honey-James will be left with about £170,000 to buy a new home. It is a ridiculous sum of money with which she cannot live off. However the court has a right to recognize the relationship between the creditor and the debtor as 'unfair' to the debtor and change the terms of the mortgage deal. Specialists of RWP hope that the banks will be obliged to drop the mortgage rate, so that people could pay it off. Probably it would become necessary to introduce a limit of the sum the borrowers have to return to the lender. Barclays claimed that they are not to blame, because the terms of the Shared Appreciation Mortgages which were sold in 1998 for three months were clear and legally sound. The company is ready to defend their position in the court.