History of equity release

The first home reversion income plan was launched in 1965. In 1972 the first home income plan based on a mortgage and annuity was issued. We introduced the first cash reversion plan to the marketplace in 1978, designed by our founder, John Inskip.

Unsafe schemes including investment bond schemes and roll-up plans with variable interest rates began to appear in 1988. These left many elderly people in financial difficulties and were banned by the government in 1990. This was the catalyst for the formation of SHIP by the four main product providers (including Home & Capital) in 1991.

The first SHIP approved lifetime mortgages (with fixed or capped rates of interest and no negative equity guarantees) were launched in 1999. Backed by household name providers and against a background of strong house price growth and low interest rates, these products have come to dominate the equity release market.

Home reversion plans written fell from a peak of £227m in 2000 to a low of just £40m in 2004, as lifetime mortgage regulation was introduced. Home reversion plans have started to rebuild from this low point and are currently growing at around 35% per annum.