Eastwood pensioner fears losing her home as bank demands huge repayment on 90s loan

Beryl Hutchinson, aged 89, would have to hand over 75 per cent of the sale price of her home if she were to sell it under the terms of a deal called a shared appreciation mortgage taken out with Barclays Bank by her husband Barry.

At the time, Barry, an ex-miner, borrowed £16,250 for a new car and home improvements and thought he would only have to pay that back, plus any interest.

Beryl believes Barry didn’t fully understand the terms of the loan which was interest-free at the time but secured against any future rise in the value of couple's home.

As a result, Barclays now stands to take 75 per cent of the property's appreciation if it is sold.

Beryl and her son Steve now fear she could lose the home which they were considering selling to help pay for care if she needs it in the future.

They pair say they feel powerless.

Speaking to You and Yours on BBC Radio 4, Beryl said: "I was horrified to think a bank could take 75 per cent.

"When you think about it, we could end up with no house.”

Steve added that as his father’s health had deteriorated he had asked him to look after more of his financial affairs and Steve had found the paperwork for the loan.

He said: "He was an ex-miner with no regular income, other than pensions, so he thought he wouldn't get a proper loan.

“He’d written a list of things to do in the event of his demise and one of these was paying back the £16,000 to Barclays but as I read through it and did the sums, it became apparent that all was not what he’d thought it was.”

Shared appreciation mortagages started in the mid-90s and were only available from either Barclays or The Bank of Scotland

They are no longer available today but it is believed around 15,000 were agreed with people like Barry during the time they were.

The leaflets advertising the product said that anyone should consider getting independent financial advice before taking out the loan.

But Beryl said she never never recalled Barry doing that and said no-one ever gave them any advice on the subject.

Steve continued: “Banks can turn round and say they couldn’t have predicted what would happen to house prices in the last 25 years but neither could any of us ordinary people on the street.

"An institution like banking, they would have had teams of experts who would have predicted house prices were going to rise.

“Barclays have been very matter-of-fact and they’re acknowledging they’re going to be taking 75 per cent.

“I have looked a legal support so see if I can challenge it, but the costs being quoted are just not affordable.

"In our case, we would have to pay £30,000 to get a settlement, then £35,000 in interest for the settlement, plus paying back the £16,250 – you might as well let Barclays take all the money.

Your Chad has contacted Barclays for comment.