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Paradigm links with RPS to offer SRB

by: Mortgage Solutions
  • 05/02/2010
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Paradigm Mortgage Services has signed a new relationship with sale-and-rent-back (SRB) firm Residential Property Solutions (RPS).

Paradigm members will be able to introduce clients to RPS who are facing financial difficulties or possible eviction and have exhausted every other option available to them.

Under the SRB scheme provided by RPS, homeowners will get the opportunity to sell their property and continuing living there as tenants. RPS purchases the property at an agreed discounted price below market value and agree an affordable market rent to enable the client to remain as a tenant.

Clients are able to purchase back their property from RPS at a future date, provided they have met all the terms of their rental agreement and they may be able to share in any increase in market value.

John Coffield, head of Paradigm Mortgage Services, said members will have certain clients who are on the brink of eviction and have no other option available.

He added: “In this situation, we believe the only option is to introduce them to a reputable and ethical SRB company like RPS, to ensure complete transparency in accordance with the FSA’s regulation of the sector. We have therefore worked with RPS to ensure this option is available to members and their clients.”

Pete Thomson, sales director of RPS, said: “The CML is forecasting that the number of repossessions will continue to rise in 2010 and despite various government initiatives and lender forbearance, there will still be thousands of homeowners who will be able to benefit from an ethical sale and rent back scheme.”

 

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