A recent report has shown that the amount of repossessions have dropped during the 2nd quarter of this year, however despite this good news, repossessions are still up when compared with this time last year. Low interest rates because of the credit crunch may be one of the factors for the drop, along with lenders showing more leniencies. However, the climate is still in recession and many homeowners worry about the future and redundancy.

If you are in mortgage arrears and are unable to repay what you owe and repossession is inevitable then you may want to look into a sell property and rent back agreement. This would allow you to sell your property, pay off your mortgage and then stay in the property by paying affordable rent. Typically the rental period is for a limited period.

Of course, there are factors that have to be weighed up but it could be an ideal solution and one that is worth considering.

If you want to enter into a sell house and rent back agreement then ensure that you choose a company regulated by the FSA to ensure that you get fair treatment and the best deal possible for your circumstances.