Your Safeguards
The Financial Services Authority
Lifetime mortgages and Home Reversion Plans are regulated by the Financial Services Authority in the UK. Regulated Equity release products have to meet the strict standards set out by the FSA.
Visit the Financial Services Authority website for further information.
Code of Practice
Most equity release providers belong to the Safe Home Income Plan group (SHIP). SHIP has set out a code of practice which providers and advisers have to adhere to.
The code of practice states:
- A valuer independent of the provider must be used to determine the true value of the property.
- The Adviser / Plan provider must provide a fair and simple explanation of plans.
- To clearly state the main cost to the householder’s assets and estate.
- To carry a "no negative equity guarantee" (you will never owe more than the value of your home).
- A solicitor to provide you with independent legal advice.
- A guarantee that you can remain in your home until death or entry into full time nursing care.
Visit the SHIP Website for more information.
