The UK economy is still in extensive care with the Bank of England reporting that unsecured credit has risen by £200 million in May 2011. Credit card lending also rose to £34 million which happens to be the lowest increase for more than 13 months. With many people still struggling financially there are fears that more people could turn to sale and rent back agreements if worried about their mortgage repayments.

Sale and rent back agreements are one way that home owners can get a guaranteed sale and remain in the property. However there are some drawbacks that have to be considered. While it is possible to get a guaranteed sale at a time when no one has money to spend, home owners are not offered 100% of the full value of their property. In fact often only around 70% to 80% is offered. Another downfall is that while you can remain in the property there is no guarantee that home owners are able to stay in the property for the rest of their lives. The typical rental period is four to five years. After this period of time tenants may be asked to leave.

If you are struggling to meet the monthly mortgage repayments there are numerous options to consider along with sale and rent back agreements. In the first instance speaking to the mortgage lender is advisable. You may be able to reach an agreement.