There are a few significant regulators in the UK that govern the way lifetime mortgage providers conduct their business. They are the FSA (Financial Services Authority) and SHIP (Safe Home Income Plans).
SHIP
SHIP is a company supported by all the UK’s leading lifetime mortgage providers. It was established in 1991 and ensures the protection of equity release plan holders and the promotion of safe home income and equity release mortgages. Being a member of SHIP means providers have to follow a legal code of conduct. They also have to offer the following assurances to their customers:
• Lifetime mortgage providers must allow customers to remain in their home for as long as they live if they wish that the property remains their main residence.
• They must let customers choose an independent solicitor to carry out their legal work, and they must also supply the solicitor with comprehensive details of the benefits their client will receive prior to the completion of the plan. The solicitor will sign a certificate to ensure that the equity release plan has been fully explained and is understood by the client.
• Providers must also give customers fair, simple and overall presentations of their equity release plan. The pros and cons of the product, together with any obligations on the part of the customer, must be clearly stated from the outset. All costs should be set out, as well as added tax implications, their position on moving house and the effects of changes in house values on their loan.
• All plans governed by SHIP carry a ‘no negative equity’ guarantee, meaning customers will never owe more than the value of their property. For more information go to:
FSA
The Financial Services Authority is an independent watchdog that regulates the financial services industry, including lifetime mortgage providers, to ensure customers are given a fair deal. They will explain products and services to consumers so that they get the facts without any bewildering industry jargon.
All trusted lifetime mortgage providers encourage consumers to research the equity release market before making any big decisions. The FSA’s website: allows you to download publications or you can order information packs to be posted to you.
Equity release schemes are available through
Age Partnership
