Fines 'needed for sale and rent back sector' - buy to let mortgages

12 November 2008

In buy to let mortgages news, trade body Safe Home Income Plans (Ship) has called on Trading Standards to take action against sale and lease back landlords who mislead consumers through inaccurate advertising.

Ship is concerned that many websites promoting sale and rent back schemes fail to inform people of the risks associated with such an agreement.

It also stated that several firms are making "misleading comparisons" with equity release products, which are regulated by the Financial Services Authority (FSA).

The organisation has urged Trading Standards to fine landlords who do not make the issues surrounding sale and lease back plans clear and outline exactly what they do and do not offer.

Director general Andrea Rozario commented: "We believe that the ethical companies in the sale and rent back sector will welcome these recommendations, as they will not want to be tarred with the same brush as those who are misleading consumers."

The Office of Fair Trading has recommended that the sector be overseen by the FSA.