Billed by the Banks in the late 90s as one of the best and most generous retirement mortgages on the market, SAMs offered customers the opportunity to release up to 25% of the value of their property.
The mortgages have, however, had the effect of trapping clients in their own homes. In addition to the adverse practical impact of the SAM, the financial consequences have meant that clients who released, for example, £40,000 from their home are facing paying back £400,000 to the Bank. The rate of interest payable on a SAM is invariably exorbitant.
Teacher Stern has campaigned publicly for the Banks to adjust the terms of their unfair products for many years now and those who led the case before me did fantastic work paving the way for what is set to be a very important trial one year from now.
In January 2024 the Commercial Litigation team at Teacher Stern will represent 160 claimants at trial (SAMs holders v various Bank of Scotland entities).
