SRB schemes 'are an excellent way to free equity'

Sale and rent back (SRB) schemes can be excellent way for homeowners to free up any equity in their property, it has been suggested.

Chris Jenkins, co-owner of the Homeowners Advice Centre, said many people are now enjoying a better standard of living as a result of these initiatives.

"Anybody who is considering SRB should remember that they will be giving away an amount of their equity when they sell their property and rent it back," he explained.

However, before deciding to opt into an SRB scheme, homeowners are advised to consider other options such as equity release and remortgaging.

Mr Jenkins said people should ensure they ask key questions before signing on the dotted line, including whether or not they will be charged to sell their property.

Financial services provider Norwich Union reveled recently that 80,000 of their customers have released £2.8 billion of equity from their homes over the last decade.