Half of homeowners would consider a sale-and-rent-back scheme if they faced having their property repossessed, a survey has shown.
Around 50 per cent of people said they would think about one of the schemes if they could no longer afford their mortgage, according to money website Fool.co.uk.
But the group found that people had low levels of understanding about the schemes, with 26% of consumers thinking they would be able to stay in their home for as long as they wanted to, while 15% thought they would be paid the full market price for their property.
Of the 1,100 people surveyed, one in 10 also said they would still consider one of the schemes even if they did not get the best price for their home and may have to move within a year.
Under sale-and-rent-back schemes companies buy the homes of people who face having them repossessed and then rent them back to them.
But the rapidly growing sector has come in for some bad press, with claims that some companies pay less than 60% of the market value for properties, while others levy steep rent increases and some evicted people after just 12 months. The Office of Fair Trading announced in May that it was investigating the sector following concerns that consumers were not properly protected.
Fool.co.uk said it was calling for all sale-and-rent-back schemes to be regulated. Donna Werbner, property expert at Fool.co.uk said: "The allure of such schemes to people facing repossession is understandable.
"However, I would urge anyone considering doing this to do their research. Much of the information out there is misleading and by the time you find out the truth, it could well be too late to change your mind.
"What is particularly shameful about these schemes is that they are targeted at homeowners facing repossession - people who are at their most financially vulnerable."
