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For The One Show, Dom Littlewood has been looking at sale and rent back firms.
They offer financially-troubled homeowners an alternative to repossession. The idea is that you sell your house and then rent it back from the new owners - so you never actually have to leave your home behind.
But Dom found that sale and rent back can be a costly business, and it seems that The Office of Fair Trading agrees with him. They've accused rogue firms of exploiting vulnerable householders and taking advantage of a serious lack of regulation.
Dom met Susan Tanner. The sale and rent back deal she thought would save her family home from repossession went badly wrong. She believes that she was taken advantage of when she needed help the most, as the firm subtracted thousands in fees and a "security deposit". And then, after selling her home and renting it back, Mrs Tanner worst fears came true as her home was repossessed because the new owners couldn't keep up the mortgage repayments.
Throughout that painful process Susan Tanner thought she was dealing with a company called Home Assured Ltd. Turned out it was actually its director who'd bought her house. The company haven't responded to our many requests for them to explain themselves. They're now being investigated by Trading Standards - and Susan is taking legal action against the director and the company.
Dom's warning: "With repossession looming over so many households a sale and rent back provider might seem like the answer to your prayers. Don't rush into it. Before you sign your house away speak to a debt charity or your mortgage provider because you could end up with virtually nothing."
See also: There's a list of recommendations for homeowners considering a sale and rent back scheme on the .
Other sources of consumer advice include:
and the government's .
Has a sale and rent back deal worked for you? What are your experiences? Click here to add your comment.
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