SHIP for Financial Advisers

• General Information
• White Paper
• Consumer Demand
• Why Advise in this market
• The Equity Release Market
• The Need for Equity Release
• Typical Client Types
• Qualifications
• Adviser Support

Equity Release has an important role to play in the future for older homeowners’ finances. The gap between the resources currently available or earmarked for the retired population, and amounts needed to provide a comfortable retirement are well-documented. For those individuals with a shortfall in retirement funding but who have property equity, Equity Release offers the opportunity to bridge the gap.

The products which caused the scandals that tarnish the market’s history weren’t introduced until the late 1980s. One such scheme used was a variable rate mortgage on the customer’s property to raise cash which was invested in an equity linked investment bond. The idea was that the yield on the bond was greater than the interest on the loan, and the customer would take the difference as an income. At the end of the 1980s, interest rates rose to 15%, the stock market crashed and property values fell.

On top of this, over recent years the equity release industry has seen significant developments. Products have evolved becoming more innovative, flexible and competitive .There has also been a shift in consumer attitude and, more importantly, an increasing need for equity release. Regulation by the FSA has helped to build consumer confidence and the members of SHIP go over and above regulation with adherence to a code of conduct which is dedicated to the protection of the customer.