Shared Appreciation Mortgages (SAMs) were offered by Bank of Scotland between November 1996 and February 1998.

Prior to any loan being drawn we strongly recommended that potential applicants sought independent financial advice to ensure the SAM scheme was suitable for their individual circumstances and that they were fully aware of the obligations they were undertaking.

In addition, the applicant's solicitors should have fully explained the legal implications of accepting the loan and also how the scheme worked.

Prior to the loan being entered into, customers agreed to share with us a percentage of any future appreciation in their property.

This was in return for a 0% interest rate for life or an interest rate that was lower than prevailing market rates, until the customer wishes to redeem the loan.

If the customer chose the 0% option, there would have been no interest payments to make during the life of the loan adding up to a substantial saving.

If the property does not increase in value during the period the SAM is in existence, the customer has no appreciation element to repay.

Customers can exit the scheme at any time by redeeming the mortgage and paying back the agreed share of any increase in the property value.

If customers are wishing to repay their SAM at the present time, we recognise that increases in property values over the past five years may mean that they will have to repay more than they initially anticipated.

Nonetheless, as the value of property can decrease as well as increase, this may not be the case with repayment going forward.

A very small percentage of Bank of Scotland SAM customers have contacted the Bank to discuss their current position and we are making every effort to assist them.

Should any customers require to contact Bank of Scotland in connection with their SAM mortgage, they can do so by writing to Bank of Scotland Customer Services at Ettrick House, 37 South Gyle Crescent, Edinburgh EH12 9DS.