Home & Capital

A founder member of Safe Home Income Plans (SHIP)

We are a founder member of Safe Home Income Plans (SHIP), the body established in 1991 to set standards of consumer protection for the Equity Release industry (www.ship-ltd.org). Through SHIP we have been active in bringing about the regulation of Home Reversion Plans by the Financial Services Authority (FSA), effective April 2007.

SHIP is a non-profit making body established by the main Equity Release providers in 1991 to set standards to protect the interests of homeowners participating in equity release transactions.

SHIP's Code of Practice

Members of SHIP agree to provide fair, simple and complete presentation of their plans. The benefits, obligations, variables and limitations must be clearly set out in their literature, including all costs which the applicant has to bear in setting up the scheme, the position on moving house, the tax situation and the effect of changes in house values.

The client's legal work will always be performed by the solicitor of his or her choice. In all cases, prior to the completion of the plan, the solicitor will be provided with full details of the benefits the client will receive. The solicitor will be required to sign a certificate to the effect that the scheme has been fully explained to the client.

The SHIP certificate will clearly state the main cost to the householder's assets and estate e.g. how the loan amount will change or whether part or all of the property is being sold.

Where lifetime mortgages are sold, all SHIP plans carry a "no negative equity" guarantee i.e. the householder will never owe more than the value of their home.