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Equity release schemes such as home reversion plans and lifetime mortgages are regulated by the UK Government’s Financial Services Authority - which offers those seeking to release equity from their homes, considerable protection.
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Since 1991, equity release providers have introduced a number of plans through the Safe Home Income Plan (SHIP) organisation. SHIP was formed to ensure members adhered to a stringent set of self regulatory rules to protect customers. Any scheme endorsed with the SHIP logo will be properly explained and, above all, safe.
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Furthermore, in April 2007, the Government’s Financial Services Authority (FSA) regulated the home reversion plan market (the lifetime mortgage market was regulated on 31 October 2004). See the FSA website for more information.
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Warning: It is vital that consumers are aware that ‘sale and rent back’ and ‘shared appreciation’ schemes are not equity release products and are not regulated in any way. These schemes provide virtually no protection to customers.
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