Sale And Rent Back To Be Regulated

UK schemes widely advertised and promoted as a way of swapping a mortgage for an affordable tenancy are to be regulated by the Financial Services Authority.

Sale and rent back schemes have had some negative press - although not all are bad - so Government is proposing new regulation to give vulnerable homeowners better protection, even though business has been using such terms for many years.

Recently, the Office of Fair Trading (OFT) told 16 companies involved in the business to justify apparently misleading claims they had been making in their adverts.

While many of the firms involved in such schemes are not involved in any misleading tactics, many of the most vulnerable homeowners are not informed enough to make decisions.

Because of this sale and rent back to be regulated is the only answer.

Tougher UK Mortgage Hurdles

According to financial information service Moneyfacts , the conditions attached to mortgages have become more severe in the past month. That means banks are continuing to rein in new mortgage borrowing despite lower interest rates and being bailed out by the Bank of England.

According to Moneyfacts, 64% of all mortgages now require a deposit of at least 25% of the value of the property. That's up from 60% just a month ago.

There are now just 10 deals on offer requiring no down payment at all, and from just two lenders. Moneyfacts stated that the number of deals on offer had been cut by 89% since the start of the credit crunch, and it seems that those remaining deals require tougher UK mortgage hurdles to be crossed before you see your mortgage.