Launched in May this year, Residential Property Solutions has created an ethical sale and rent back scheme to help broker clients avoid potential repossession by selling to RPS, renting back at a true market rate with a guaranteed buy-back option. The affiliation with TMA will allow directly authorised brokers access to its RPS Home Rescue and Buyback plan which is tailored towards broker engagement as it comes with a free legal and valuation service. Intermediaries who introduce clients to RPS will receive a commission of 0.4% of the agreed purchase price of the property on each completed transaction.
The FSA has recently published the details of the regime it aims to introduce on 1 July to tackle problems in the sale-and-rent-back market. This follows the HM Treasury’s announcement that it is extending the scope of FSA regulation to include sale and rent back, as it considers this to be the most appropriate way of ensuring consumer protection in this market. The regulator also supports recommendations made last year by the Office of Fair Trading, following a market study which found that sale and rent back deals had the potential to cause serious harm to homeowners who are often already in a vulnerable position.
RPS has been designed to address the many issues raised by the OFT study of the sale and rent back market and the FSA’s consultation paper. It will dedicate a website to TMA members containing all the required instructions and support information. Members can follow a link directly from the TMA website www.themortgagealliance.com. TMA is free to join and this offer is available to all directly authorised brokers.
Phil Whitehouse, Head of TMA, commented: “Exploring the debt solutions market makes great sense in times when increasing numbers of people are currently experiencing or facing potential financial difficulties. Forward thinking brokers are realising the benefits offered by this sector and are embracing these opportunities to help more clients whilst earning valuable income from all customer interactions. Brokers remain in pole position to help clients with their financial concerns and it is hardly surprising that many debt advice firms have concentrated much of their distribution strategy on appealing to the intermediary market. Choice and diversity remain crucial elements to success and TMA will continue to give members access to strong propositions with key players across various sectors. I am delighted to be working in this area with the team at RPS who I have known for several years and have a solid reputation in the industry.”
Peter Beaumont, chief executive of RPS, added: “We’re delighted to be working with TMA to provide for their members and clients what is the UK’s first truly ethical home rescue and buyback plan. We’ve listened to all the criticism made about SARB and have developed a scheme from scratch which addresses all the issues head on.
“SARB will not be right for everyone, but it does provide a valid solution for homeowners facing eviction, who have exhausted every other option. We believe our scheme has raised the bar for all businesses in this market sector and we aim to keep on raising the bar even higher. TMA members can introduce clients to RPS safe in the knowledge that they will be offered a fair, fully transparent and safe way to resolve their financial problems and remain in their homes.”
