A new survey has found that lack of understanding about sale and rent back schemes could result in many homeowners making poor decisions.

Results of the survey by money website Fool.co.uk showed that half of homeowners would consider a sale and rent back scheme if they faced possible repossession of their property.

And around 50 per cent of those surveyed would consider one of the schemes if they could no longer afford their mortgage.

According to the survey, many people have a low level of understanding about the schemes - 26 per cent of consumers thought they could remain in their home for as long as they wanted to, while 15 per cent thought they would be paid the full market price for their property.

One in 10 people also said they would still consider one of the schemes even if they did not get the best price for their home and might have to move within a year.

Sale and rent back schemes involve companies that buy homes from people who face having them repossessed and then rent these homes back to them.

But the rapidly growing sector has come under fire recently, with claims that some companies pay less than 60 per cent of the market value for properties, while others levy steep rent increases and some even evicted people after just 12 months.

In May this year, the Office of Fair Trading announced was investigating the sector following concerns that consumers were not properly protected.

Fool.co.uk said it was calling for all sale and rent back schemes to be regulated.

Donna Werbner, property expert at Fool.co.uk said: "The allure of such schemes to people facing repossession is understandable.

"However, I would urge anyone considering doing this to do their research. Much of the information out there is misleading and by the time you find out the truth, it could well be too late to change your mind.