Shared Appreciation Mortgages

our mortgages explained

Shared Appreciation Mortgages are mortgages that were sold by Barclays for a short time in 1998. We no longer offer equity release products such as these.

The Shared Appreciation Mortgage Scheme aims to help customers who are in a situation of substantial hardship, and as a result need either to move to a more suitable property or adapt their existing home to make it suitable to their needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What are Shared Appreciation Mortgages?

In return for nil repayments on their loan, customers agreed to repay on sale of their property the original sum borrowed, plus a percentage of the house price increase (equity) up to a maximum of 75%. If house prices had fallen customers would have paid back only the original sum borrowed.

The loan could not be transferred to another property so some SAM customers, whose homes have dramatically risen in price since 1998, now find themselves in situations of substantial hardship, which is often exacerbated by the terms of the product.

Barclays is unable to vary the terms of the SAM as the product was sold to third-party investors in 1999. As such, in June 2007 we set up the Barclays Shared Appreciation Mortgage (SAM) Hardship Scheme (the Scheme), to help these customers.

What is the Scheme?

The Scheme aims to help customers who are in a situation of substantial hardship, and as a result need either to move to a more suitable property or adapt their existing home to make it suitable to their needs, but are unable to do so due to their SAM.

Although there is no strict definition of 'substantial hardship' and each case is considered individually, eligible customers predominantly fall into the following broad groups:

  • Customers who need to move to a more suitable property owing to disability/illness/mobility/change of circumstances (the SAM is not portable)
  • Customers who wish to remain in their current property, but who need to adapt it to their needs (caused by disability/illness/mobility difficulties)

The Scheme offers a solution for each of these groups:

  • For eligible customers wishing to move, help to buy a new, more suitable property through an Interest Free Assistance Loan (IFAL)
  • For eligible customers wishing to stay in their current property, a SAM 'grant' to carry out specific required adaptations

The Scheme does not cater for the following:

  • Customers making a general complaint about the fairness of the product or its features (without indicating a resultant situation of hardship)
  • Customers alleging mis-selling (without indicating a resultant situation of hardship)
  • (These complaints should be directed through the normal complaints channels)
  • Non-SAM holders, eg. beneficiaries of deceased SAM holders

The Scheme does not offer:

  • Cash payouts and/or compensation (this includes releasing part or all of the remaining equity for personal use if applying for an IFAL)
  • A change in the terms of the SAM

More information

If you'd like to find out more about the Barclays Shared Appreciation Mortgage (SAM) Hardship Scheme, please download an overview leaflet or call one of our case managers on freephone 0800 023 2981 1.

Important information

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