The FSA is warning consumers to beware a ‘no cost' property income plan which permits an insurance company to take a legal charge on policyholders' homes.
Promotional material seen by the regulator claims the product - called Crossroads and offered by Asset Income Plan Ltd - pays homeowners an annual income of 5% based on 50% of the value of their property for a set period of time, usually three or ten years. To qualify for the income, however, homeowners must allow an insurance company to take a legal charge on their property up to a maximum of 50% of its value. The FSA says consumers need to be aware that when a firm has a legal charge on a home, it means they have rights over the property. The product information states the only r...
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