Consumers in the UK need to be on their guard against the unscrupulous practices of property sale and lease back scheme providers, it has been claimed.
Key Retirement Solutions has expressed its concerns that homeowners facing
debt management problems could enter into unfavourable sale and lease back agreements because of the lack of effective regulations in the sector.
The equity release company has warned that while these schemes are presented to homeowners as a quick way to solve financial difficulties they should be taken seriously by potential customers.
To highlight its concerns, the company has quoted the National Association of Sale and Rent Back as saying: “There are providers who have been specifically targeting the vulnerable and not offering a secure tenancy going forward and it is this practice which is giving the entire sector a bad name.”
Earlier this month, the Council of Mortgage Lenders predicted that the rate of home repossessions will increase over the course of this year as debt management woes worsen for consumers around the country.