SAM Mortgages

SAM Mortgages

Oil Portrait of Margaret

For many years Susan and I have trusted in the advice given to us by professional financial advisors. Unfortunately we have been persuaded to take out certain policies which were not in our best interests.

The same can also be said of my mother in law, Margaret Thompson who was advised to take out one of the SAM Mortgages (Shared Appreciation Mortgages) that used to be available through the Bank of Scotland in the late 1990’s. Below is part of a letter of complaint that she wrote in 2003 that describes some of her story.

Feb 1998  (Name of the financial advisor) came to visit me for my annual financial review. I shared my slight concerns regarding how I would continue to pay my mortgage payments once I had retired. At this point in time the financial advisor was aware that I had a considerable amount of savings.

It’s important to say that Margaret had sufficient savings to pay off her entire mortgage.

His advice to me was that there was a new scheme out with the Bank of Scotland, which he advised, would be just right for me.

I explained to him that my primary concern was to leave an inheritance for my three daughters after working so hard all of my life. He explained how the SAM Mortgages worked by me not having to make any more mortgage payments and that the Bank of Scotland would take 25% of the profits when my house was sold + the original mortgage amount.

I repeated this back to him on numerous occasions to make sure that I had fully understood the concept and the percentages involved. He agreed that I had fully understood everything correctly.

The mortgage application forms were completed and he recommended me to see his friend who was a part time solicitor who worked from home to sign the documents (name of solicitor). 

I did see her to sign some documents, I was in her home for less than 10 minutes, not at any time did she explain or talk me through the terms of the mortgage.

April 2003 My daughter and son in law were watching BBC Watchdog where various viewers had complained about SAM Mortgages. My daughter telephoned me to inform me that the percentage of profits owed to the Bank of Scotland was 75% and not the 25%, which I had been led to believe by the financial advisor. At this point I was in total shock and decided to complain through the appropriate channels.

A complaint was put forward by Margaret, however no compensation was ever received. There may be some hope for those who were mis-sold SAM Mortgages as there is now a legal challenge against SAM Mortgages confirmed for 2019

I had the privilege of painting several portraits of Margaret before she passed away in 2014 through secondary breast cancer.

Because of my mother in law’s loss and the costly advice Susan and I have received from several financial advisors, we have decided to join Genistar, a financial education company. Our mission is to help families become debt free and financially independent. We do this through education and by involving YOU in the planning process. Instead of advice we offer something better: education to make the right choices.

 If you would like to receive a free Financial Game Plan that gives you a comprehensive overview of your finances so that you can make educated and informed decisions or if you would like to discover how you too can become a part of Genistar then please telephone Susan and I on 01661 871 800 or email


Tags: , , , ,

About alan

British artist Alan Reed, was born in Corbridge in the North of England into a family with a history of painting. "I have been passionate about painting all my life and committed to helping others through my paintings". Alan trained as an illustrator / graphic designer in the North of England and spent the early part of his career doing artist impressions of new building projects for architects. Alan Reed specialises in landscapes, cityscapes and portraits both in watercolours and oils. His unique, fluid style captures the atmosphere of different settings from the drama of city life to the serenity and beauty of a rural landscape. Alan Reed has had many successful exhibitions both in the UK and abroad including those at the Mall Galleries in London, Malcolm Innes Gallery in Edinburgh, Italy, the USA and the Middle East and has been a regular exhibitor of rowing scenes in the Stewards’ Enclosure at the Henley Royal Regatta. 2013 Winner of "The Artist's Prize" in the Royal Watercolour Society Competition 2013 with his painting "Jebel Akhdar, Oman". The painting was exhibited at the Bankside Gallery, London.   2011 Alan Reed - Winner of the "Circus Painting Prize" in the Bath Prize. Alan Reed's painting of  “Pump Room in the Snow” was highly commended in the Bath Prize. 2011 Alan Reed - One of the finals with his painting of "Grey Street" in the "Show me the Monet" programme shown on BBC2. 2010 Alan Reed - 1st runner up in "The Bath Prize" with his original painting of "The Royal Crescent, Bath". Alan Reed's painting of the "The Roman Baths by Torchlight" was also highly commended in the Bath Prize. Artist Alan Reed's approach to painting is described in a book
entitled "Landscapes in Watercolour" by Theodora Philcox, an inspirational book which features the work of 23 leading watercolourists from around the world. The Middle East is an area to which Alan has given his artistic attention thanks to a series of ongoing commissions for the government of Oman. Alan’s work has become increasingly collectable and is widely represented internationally through private and corporate commissions including those for Royalty, Coutts Bank, Rolls Royce, Northern Rock PLC, several client’s private and corporate properties both in the UK and worldwide. We supply to Interior designers, Cruise ships, Corporate companies and galleries providing the perfect solution to meet all your needs. Portraits, Gift Vouchers, Sherree V-Daines, Sketchbook, Reviews, Painting Tips and Paintings for the Queen Worldwide Shipping