Brokers with clients facing property repossession can refer cases to general insurance network Ceta which will buy the property from the owner to prevent them losing their home.
Ceta will pay intermediaries 400 per referral and allow the client to continue to live in their home while paying the market rate of rent.
But the network will only pay up to 75 per cent of the value of the property, which means the owner must have at least 25 per cent equity in their home.
Customers will then be offered a buyback guarantee at an agreed discount to the current market value for a period to be determined by Ceta of up to five years, providing that monthly payments are maintained.
Ceta will also help source a mortgage for the client. A spokeswoman says: “If brokers’ contacts on their database are facing eviction, we are able to offer an escape route.”
London & Country mortgage specialist James Cotton says: “People must be aware they are selling the property at, at least 25 per cent below market value. That is quite a cost, so should not be entered into lightly.”