The mortgage rescue scheme from the government was introduced to help people avoid losing their homes if they found themselves in trouble with their mortgage repayments. However the scheme came with high costs, more than three times the expected cost and has helped far fewer home-owners than expected. The overall scheme has cost £240 million since its launch in 2009. This scheme along with sale and rent back agreements were aimed at those who were struggling to meet their mortgage repayments.

This scheme relied on people applying for an equity loan to help with the repayments or they could sell their property to an housing association and then rent it back. The sale and rent back agreements worked on a similar principle but came from companies who had entered into the sale and rent back market.

The sale and rent back sector however began to receive a bad name when it was found that some companies were offering poor advice and not acting in the best interests of the home-owner. The Financial Services Authority is now regulating the sector in the hope that consumers will be treated more fairly. However despite the intervention of the FSA a few companies are still failing to meet the guidelines. If you are thinking of selling your home to rent it back, beware of all the facts surrounding the sale. Typically you will not full value for the property and the rental agreement is usually for a fixed period of four or five years.