Don't settle for just one rent-back firm

18 January 2010

Sale-and-rent-back is now a Financial Services Authority-regulated product so to provide advice a firm must have FSA permissions.

Interim authorisation includes two categories of firm - those newly authorised and those with variations of existing FSA permissions.

Many of these firms probably have experience and expertise in advising on other products such as mortgages, equity release and life insurance. They have a range of providers to ensure the client gets the best deals.

The same should apply to rent-back advice. There are only a few firms with the experience and infrastructure to deal with brokers that also operate nationally, my own firm being one.

Firms giving rent-back advice shouldn’t limit themselves to one provider. What happens if that provider declines an application? A solution is probably out there for the client. And if just one provider is used, will they be the best solution for every client?

Competition is good for the industry as well as being an important driver of innovation, meaning other firms follow the lead of those that design tailored rent-back solutions.

As a broker, you commit time and resources to finding solutions for clients and if your provider’s conversion rate is poor or transactions progress slowly both you and your clients lose out.

To provide the best service for your clients you should at least have a back-up provider of rent-back solutions.

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