Comments from the general public on a popular financial advice website are broadly in favour of the sell-and-rent-back approach.
Comments from the general public on one of the most popular British financial advice websites give a solid thumbs-up to the sell-and-rent-back idea.
Thisismoney.co.uk, a website owned and run by the Daily Mail group, ran a story recently looking at the sell and rent back idea – where people sell their homes but carry on living in them, paying rent instead of having to make hefty mortgage payments. And a selection of the comments made by people about the story – published on the website – were broadly in favour of the concept.
Sell and rent back: good for credit problems
The article itself focused on many negative perceptions people have when they consider the sell-and-rent-back idea and suggested that people speak to their mortgage lender before they sell and rent back to see if they could get a cheaper deal on their home loan.
"Mark" from Edinburgh said that he'd tried this approach, but without any success. "I've never missed a mortgage repayment in 6 yrs", he wrote. "I wanted to remortgage my property …. Well the answer was no, your credit scoring is not up to scratch. So there you go. Sell and rent back is an option I'm looking at now and will look into it a bit further."
Sell and rent back: the responsible borrower's view
"Linda" from Nottingham summed up a constant theme throughout the comments when she wrote, "I put thirty thousand pounds deposit on my house (from a previous house sale) and got a mortgage for fifty thousand for the rest. Now three years down the line, I have lost my job and cannot find another. Now my lender is seeking repossession.
"They are not interested in my position," she continues. "I am going to contact one of these sell and rent back companies and be done with it. As long as what I owe is paid off and I still get a few thousand to try and start again then so be it."
Sell and rent back: much better than repossession
She makes an interesting example as she is obviously not somebody who has over-borrowed. "I want to make it clear that repossessions don't just happen to people who mortgage themselves to the hilt. Mine is through no fault of my own and I feel that sell and rent back is the best option for me at this time."
And she finishes on a positive note, saying: "It is a pity about the equity I have in the house but better to come out of it with something rather than nothing!"
And "Jill" from Merseyside sums up the attraction of sell and rent back to many people when she says, "Sometimes you just don't have a choice …. Since the household income dropped by £800 per month, the mortgage and secured loan is now 2/3 of salary. Too much work required to sell on open market and in the meantime the debts are increasing."
Sell and rent back is "win/win/win"
P Mayer of Essex points out that to sell and rent back is a win/win/win idea. "Win for the bank," he writes, "they get their money back plus interest.
"Win for the homeowner – they get to pay off their debts, live in the same house and an opportunity to start over." And he concedes it is also a win for the sell-and-rent-back business who obviously hope to make a profit – as everyone in business does – but does it while they are helping other people and is also taking the most risk, as they will be the ones who suffer should house prices fall.
Sell and rent back with sellandrentbackltd.co.uk
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