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How am I protected?
Taking out an equity release scheme is a big step, so it’s very important that you are protected from poor advice, or even unscrupulous salesmen. There are two bodies which help to protect customers in the equity release market.
SHIP (Safe Income Plans)
SHIP is a self regulated trade body that helps to ensure the interest of customers who take out an equity release plan. The leading equity release providers have agreed to adhere to the following points:
- You can stay in your home for life.
- You will never lose your home, despite changes to interest rates or property prices.
- You will never owe more than the value of your home, due to a “no negative equity” guarantee.
- You can move home (subject to criteria).
FSA (Financial Services Authority)
The FSA provides additional safety when it comes to equity release, since it regulates all schemes and ensures:
- Clear advertising
- Transparency regarding plans
- Access to compensation schemes (if needed)