WHAT IS EQUITY RELEASE?

• History
• Understanding
• How It Works
• Next Steps

• Equity Release
• General Information
• Equity Release Plans

The Equity Release market in the UK started in 1965 with the launch of the first modern home reversion plan. A number of other providers were active in the market through the 1960s, 70s and 80s with “mortgage and annuity” schemes, or “Home Income Plans” available from 1972. There is a general awareness that there have been issues with “early” equity release schemes, but it is important to note that these earliest schemes were not the culprits – indeed, throughout this period there have been no issues with sound products securely distributed

SHIP was launched in 1991 to promote safe plans and to safeguard the interests of customers via a code of conduct for the industry. Its aim is to ensure that a repeat of the scandals of the late 1980s never occur again.

In 2004, lifetime mortgages became a regulated product under the Financial Services Authority (FSA). Home reversions became regulated in 2007.

More than £1bn in equity release loans was taken out by customers in 2008 and this figure is expected to grow significantly over the next few years.