How SHIP Helps You

• How SHIP Helps You

We realise that releasing Equity through a lifetime mortgage or home reversion plan is a serious undertaking involving a wide number of considerations. Our members understand this and have shown their commitment by agreeing to the SHIP Code of Conduct.

SHIP membership is not easy for a company to secure. Members are only accepted once they meet our strict criteria. We hope that the presence of the SHIP logo eases any of the possible stress and strain associated with this process and reassures you that our members do have your protection and interests at heart.

Taking out Equity Release is not right for everyone. Anyone using their home to raise money should ask themselves the following three questions:

If you buy a Lifetime Mortgage or Home Reversion plan through a member of SHIP, you are guaranteed that the answer to each of these questions is YES. This guarantee applies to whether you are raising a loan with your house as security or selling all or part of your property to generate cash or income.

Please note however that different members offer different plans adviser should give you the necessary advise in order to make this decision.

SHIP membership, however, goes further in its protection of customers’ interests. SHIP members provide you with the following guarantees:

1. The right for you to remain in your property for the rest of your life.

You retain this right no matter what happens to the property prices. This is subject to your home remaining your main residence throughout this period.

2. Fair, simple and complete presentation of a plan.

This means that all product terms such as benefits, limitations and risks are clearly set out in the literature, including all costs that you are liable for when setting up the plan. It also covers the members’ position on moving house, the tax situation and the effect that changes in house values may have on your plan.

3. The right to choose the independent solicitor of your own choice

Before your plan is formally completed, your solicitor will be provided with full details of the benefits you will receive. He or she will be required to explain these terms to you to ensure that you have a thorough understanding of the plan you are taking out.

The solicitor must then sign a SHIP certificate stating that this requirement has been met. No SHIP endorsed plan can go ahead without a signed certificate.

4. A clear understanding of the main cost to your assets and estate of taking out the plan

This will tell you for example how the loan amount will change or in the case of home reversions whether all or part of the property is being sold.

5. A No Negative Equity Guarantee

With this guarantee your lender promises that you or your beneficiaries will never have to pay back more than the value of the home and there will therefore be no debt left to the estate.

6. Receive advice from a fully qualified adviser

SHIP members can only accept applications from advisers who are specifically qualified and have followed a fully advised process, which ensures you are fully aware of other options and the impact a plan may have on any entitlement to state benefits or tax.

7. Fixed or capped interest rates

SHIP members have to offer either fixed or capped interest rates. This means you can tell exactly how much is owed at any one time.

On top of this members of SHIP who provide plans are regulated by the Financial Services Authority, the Government watchdog for financial services. For more information on why this is important to customers please see “FSA Regulation”

These are very strong guarantees that apply whenever you see the SHIP logo on any of our members’ literature You can rest assured that any member endorsed with the SHIP logo will offer safe plans through a properly explained process.