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.