FSA issued new rules on sale and rent back deals
The FSA (Financial Services Authority) has today issued a number of new rules which will form a key part of the future sale and rent back market for UK homeowners. This is an area of the market which has attracted some of the more undesirable salespeople in the financial world and there have been many instances of pressure placed upon homeowners to take unrealistically low prices for their property.
Under the terms of the new rules, hard sell techniques will be outlawed, cold calling will be banned and those who agree a sale and rent back will be guaranteed a minimum tenancy agreement lasting five years. There will also be "affordability and appropriateness checks" to ensure any deal agreed is in the interests of the consumer.
As more and more people are struggling to pay their mortgages in the UK there has been increased demand and increased interest in the sale and rent back market. Even though the vast majority of parties operating in this sector are above board and offer fare deals to their customers, there have been some instances of hard sell and underhand tactics. Hopefully these new rules introduced by the FSA will give consumers more confidence that any deal signed is in their best interest at the time. There will also be a 14 day cooling off period to give consumers time to consider the merits of any deal they have agreed.
Share this..
Related stories
Personal loan providers "thinking twice"
APRs for personal loans have increased threefold over the past 12 months due to the credit crunch, according to a financial website.A new report from MoneyExpert.com, released today, compared personal loan rates in January and those of today.It found that the average APR had gone from 10.65 to 29.4 per cent over this period.This is despite the Bank of England's official rate being cut from 5.5 per...
Read MoreBritish Chambers of Commerce calls the end of the recession
The British Chambers of Commerce (BCC) has today called the end of the UK recession with a likely exit point being the final quarter of 2009. However, while upbeat about the performance of the UK economy in general, it is worth noting that growth in the fourth quarter of 2009 (yet to be confirmed by the Office for National statistics) is expected to be lower than that seen earlier in 2009. So what...
Read MoreOcado shares trade at discount to float price
Internet grocer Ocado is today trading at a discount to its float price of £1.80, having traded as low as £1.55, even after a reduction in the offer price yesterday. It would seem that a mixture of economic concern, market resistance to new issues and debate over the valuation of the company have come to the fore to create a very difficult trading environment. So what next? Chief executive Ti...
Read MoreWill the improvement in the UK economy be enough to save many from disaster?
The surprise improvement in the UK economy in the second quarter of 2010 has caught many analysts and experts by surprise although ultimately it should lead to greater consumer confidence. However, while you would hope that an improvement in the UK economy would have an immediate impact upon personal financial wealth in the UK, many people in financial trouble at the moment have gone beyond the po...
Read MoreAlistair Darling blames the UK banks for the current recession
In a further spate of the blame game the Chancellor of the Exchequer Alistair Darling has this evening again suggested that the current recession can be laid fairly and squarely at the door of the UK banking sector. Rather bizarrely, he has suggested that the banking companies in the UK had been guilty of "hiding their liabilities" when the Northern Rock debacle was in full flow.
He...