Mortgage Information

Mortgage Types


Leaseback and sale schemes to be regulated

23/10/2007

The Council of Mortgage Lenders are calling upon the Treasury to let the FSA regulate sale-and-leaseback schemes, simply to offer better protection for consumers.

Sale-and-leaseback schemes give a chance to owners to sell their properties to a firm and then stay in the property by leasing it back. It has been stated that many firms are offering security of tenure, and homes are often brought at a special rate without an independent valuation.

CML director general, Michael Coogan commented: "Controls exist for action taken by mortgage lenders when customers are in arrears.

"The government needs to consider urgently whether regulation of sale-and-leaseback schemes by the Financial Services Authority is appropriate because it would provide protection for potentially vulnerable consumers."

A member from the firm stated that the actions of some companies offering 'sale-and-lease back' schemes amounts to daylight robbery, causing a number of people financially ruined and with out accommodation.

Mr Coogan added, "Our Government must urgently introduce regulation to stamp out this unscrupulous practice, which is cashing in on people's financial problems and deepening their misery."


Free Mortgage Enquiry