As repossessions rise, so does the risk of a return to sale-and-rent-back scams?

 

 

Interest rates are set to rise sooner rather than later and when they do the skids could be put under tens of thousand of stretched mortgage borrowers. “Low interest rates have helped many struggling debtors stay in their homes but I fear with three interest rate rises predicted by economists before the end of the year, we will see a fresh surge in arrears and repossessions,” says Una Farrell, from national debt charity Consumer Credit Counselling Service (CCCS).

 

And with arrears and repossessions the controversial sale-and-rent-back (SRB) firms rear their heads. Their schemes, which enable desperate homeowners to sell their homes quickly, then rent the property back, have come under heavy criticism in the past. Previous investigations found that some firms would offer struggling homeowners as little as half the market value of their property, lock them into expensive rental arrangements and force some tenants out of their homes after less than a year.

 

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