Family 'let down' by bank over controversial loan

The family said they thought the bank was going to give them options during the meeting

A family say they feel "let down" after a bank refused to make any changes to a mortgage deal under which they face losing their Edinburgh home.

Eddie and Lilian Gray took out a £19,500 loan from Bank of Scotland in 1997 - but the cost of repaying it is now expected to be more than £200,000.

The bank said it spoke to the family "at length" after they raised concerns.

But no changes to the deal were discussed at that meeting, which the family described as "despicable".

The Bank of Scotland said Mr Gray, 90, was able to stay in his home without making any payments.

He and his wife Lilian had taken out the shared appreciation mortgage in 1997 to help fund their retirement.

The £19,500 they borrowed was interest-free and did not need to be repaid until they either both died or sold their home.

Eddie Gray and his late wife Lilian (centre) took out the loan in 1997

However, under the terms of the loan the bank will receive 75% of any increase in the price of the house.

Their semi-detached home in Buckstone was valued at £78,000 at the time, but is now worth £320,000. That means the bank would be entitled to about £201,000 - the original loan, plus three quarters of the property's increased value.

Their children Elaine, 63, and Kenneth, 58, say they will be forced to sell the house to pay the debt when Eddie, who has dementia, passes away. Lilian died in 1999.

The Bank of Scotland no longer offers shared appreciation mortgages.

After the family spoke to BBC Scotland last year, it said: "We encourage customers who have taken these products and are now facing difficulty to contact us to see what options may be available to support them."

Christopher Croal said he was devastated over what had happened

Eddie's daughter Elaine, his grandson Christopher Croal, and family friend Stephen Scott arranged a meeting with the bank last month.

However, Mr Croal said he was "very upset" that the bank had not offered them any options.

The 32-year-old said his grandparents had been loyal Bank of Scotland customers, but were now being "exploited".

"The sheer complexity of this loan has been very difficult and something we still don't fully understand," he said.

"The bank shouldn't have a leg to stand on. There has to be some customer care and a relationship between the bank and the customer.

"It is despicable and makes us feel so let down."

Mortgage terms

Thousands of people took out similar loans across the UK. A legal challenge has been mounted in London, but is yet to reach court.

However, the family is not allowed to join that legal challenge, which started in 2016, because it is being pursued under English law.

Mr Croal said escalating legal fees had stopped his family pursuing their case in Scotland.

A Bank of Scotland spokeswoman admitted no changes to the mortgage deal were discussed in the meeting.

She said: "We have spoken to the customer's family at length about the details from when the mortgage was taken out.

"We have explained that under the terms of his mortgage, Mr Gray is able to stay in his home without making any payments."