Is Equity Release Safe?
Both Lifetime Mortgages and Home Reversion Plans are now regulated by the industry watchdog, the Financial are now regulated by the industry watchdog, the Financial Services Authority (FSA).
Advisers who practice in the Equity Release market must now have additional specialist qualifications.
The market is protected by an industry body called SHIP (Safe Home Income Plans). It was set up in 1991 and is dedicated entirely to the protection of plan holders and promoting only safe equity release plans. Their Code of Practice has been welcomed by Age Concern.
The safety of our clients as paramount. As such, we will only recommend a plan that has met all the standards and guarantees set by SHIP.
Some of these guarantees are stated below:- The right to remain in your home for as long as you want.
- That you will never fall into negative equity no matter what happens to house prices in the future.
- The freedom to move to another property without financial penalty (subject to lenders' criteria).
- Independent Legal Advice from a solicitor of your choice.