You are researching all about Equity Release and Home Income Plans and probably want to know what safeguards are there to protect your interests. You have probably come across Safe Home Income Plans, also known as SHIP, but who are they and what do they do?
Well, SHIP is a company that was set up in 1991 by the main providers of home income plans and equity-release plans. The idea is that SHIP provides protection to planholders and it does this by offering certain standards which must be adopted by product providers if they are to be included in SHIP.
The companies must offer a fair and easy to understand presentation of their products which must also fully explain their plans. The member firms must conduct business in adherence to the SHIOP Code of Conduct. Briefly this means:-
- Literature must clearly set out costs, benefits and obligations as well as limitations and any variables.
- Presentations must be clear, simple and complete.
- Legal work for the customer must be carried out by a solicitor of the client’s own choosing. The Lawyer must issue a signed certificate saying that the plan has been explained to the client.
- A Certificate will be issued clearly giving the main cost to the home owner’s assets.
- A plan can only use the SHIP logo if the provider gives a guarantee that the loan will never exceed the value o the house. This is known as a “no negative equity guarantee.”
You can read the full details of the Code of Practice at SHIP.
The members of SHIP are:
- Mortgage Express
- Bradford & Bingley
- Bridgewater Equity Release
- Bristol & West
- Coventry Building Society
- Dunfermline Building Society
- Hodge Lifetime
- Home & Capital
- In Retirement Services
- Just Retirement
- LV=
- more 2 life
- National Counties Building Society
- New Life
- Northern Rock
- Norwich Union Equity Release
- Partnership Home
- Prudential
- Retirement Plus
- Saffron Building Society
- Standard Life Bank
- Stonehaven
- Stroud & Swindon Building Society
All members of SHIP are regulated by the Financial services Authority who have only the Consumers’ interest in mind. The FSA complaints procedure exists if you are unhappy about anything and it includes strict deadlines for action, such as a response within 5 working days upon receipt of a complaint.
You must go through the plan provider’s own complaints procedure first but as these companies are regulated by the FSA I can assure you that complaints will be taken very seriously and I would be amazed if there was anything other than a very prompt response and a sift follow up to any letter of complaint from you. In the unlikely event that you are unhappy with the outcome from the internal complaints procedure then you have the right to go to the Financial Services Ombudsman for a ruling.
Needless to say that top of your checklist should be that anyone you deal with should be a member of SHIP.