Numerous companies online may offer to buy your home from you and then rent it back to you. Many of them are ethical and meet the requirements set by the FSA. However, there are also the less than ethical ones who have in the past, misled the homeowner. Therefore, if you are considering selling your home this way ensure that you choose a company who is regulated by the Financial Services Authority.

The FSA monitors companies to ensure they meet guidelines when offering sale and rent back agreements. If you want to sell house this way and pay off your mortgage to avoid losing your home, whilst remaining in it, for a fixed period, you have to avoid the companies who mislead.

It has been reported that some companies in the past, before the FSA began regulating, led homeowners to believe that they could rent over the long term when in fact there is typically a fixed period. Some misled homeowners when it came to how much their home was worth, usually companies give around 70% of the value.

If I wanted to sell my home to avoid home repossession then I would ensure that the company I chose to sell my home to was indeed a regulated and ethical company.