Mis-sold Mortgage Claims > Mortgage News
FSA Says Many Sale and Rent Back Customers Have Been Mis Sold
Mon, 06 Feb 2012
The Financial Services Authority (FSA) has just published a report which highlights that most sale and rentback (SRB) deals were either not appropriate or not affordable and therefore should not have been sold.

Given a review of all regulated SRB companies, the FSA has referred a firm to its enforcement division whilst others have ceased taking on new business or cancelled permissions.

This means that the whole SRB market is shut temporarily.

Prior to this the FSA had identified and published areas of concern in relation to financial promotions targeting vulnerable consumers.

There has even been an SRB transaction where buy to let mortgages were mis-sold where properties were bought by a company at below market value, then increasing purchase prices to defraud the lender.

The FSA confirmed that sale and rent back mis-sold mortgages have affected struggling home owners the most.

The temporary closure of this market may have been avoided should sale and rent back companies have taken time out to wholly understand their regulatory responsibilities as well as customers' needs. They were apparently more focused on their own commercial success as opposed to the welfare of customers.
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