Homeowners 'must be protected from misleading sale and rent back firms'

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Homeowners 'must be protected from misleading sale and rent back firms'

Tue 11th Nov 2008

People who have paid off their mortgages but are looking to release some equity need to be protected from certain firms offering sale and rent back schemes, according to Safe Home Income Plans (Ship).

The trade body - which represents 90 per cent of the country's equity release providers - wants Trading Standards to become involved in instances were sale and rent back firms mislead customers.

Some of these companies, Ship claims, are inaccurately comparing some of their own products with equity release products that re regulated by the Financial Services Authority.

In other instances, the organisation suggests incorrect information is given on the risks involved in both equity release and sale and rent back schemes.

"At the moment the sale and rent back sector is growing unchecked and aspects of it could present a real danger to consumers," said Andrea Rozario, director general of Ship.

Research published by the company recently suggested that equity release can allow more over-65s to stay at home, despite the rising cost of care.

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