SHIP COMMENTS ON ITV 1’s TONIGHT WITH TREVOR MCDONALD (BROADCAST 15th OCTOBER)

SHIP, the trade body for the Equity Release industry, comments on the issues raised regarding Shared Appreciation Mortgages and Sale & Rentback providers in ITV 1’s Trevor McDonald Tonight programme (Monday 15th October).

Jon King, Chief Executive of SHIP commented:

“While we acknowledge Sir Trevor’s positive comments about SHIP, it is extremely important that consumers realise that neither Shared Appreciation Mortgages or Sale & Rentback Schemes have anything to do with SHIP approved Equity Release.

“No Shared Appreciation Mortgage scheme was ever part of SHIP and in fact at the time they were marketed, in the late 1990s, SHIP issued warnings about the schemes to the media.

“It is vital that consumers realise that Sale & Rentback is not Equity Release, the key difference is that Sale & Rentback provides virtually no protection to consumers whereas the Equity Release industry provides complete protection. In Sale & Rentback, there is no security of tenure for the seller, who takes on a shorthold assured tenancy agreement. In addition, virtually none of the industry is regulated.

“By contrast, the Equity Release industry which enables homeowners aged 55 and over to realise the value of some or all of their home, is fully regulated by the FSA, providing complete consumer protection regarding sales and advice and access to a compensation scheme.

“Further, 90% of this industry are SHIP members, which means that all products comply with a strict code of consumer protection, which provides four major guarantees. Most importantly, all SHIP members’ products provide complete security of tenure for life which means that the client can never be forced from their home. In addition SHIP members’ products carry a no negative equity guarantee which means that a client will never owe more than the value of their property. Thirdly SHIP members insist that clients take independent legal advice before taking out equity release and fourthly all clients have the freedom to move home in the future if they wish.”

For further information, please contact:

Emma Bowden/Faye Williamson The Wriglesworth Consultancy Phone: 0207 845 7900

Jon King SHIP Chief Executive Phone: 02920 371725

About SHIP:

Safe Home Income Plans (SHIP) is the UK’s leading professional body for equity release product providers, representing the interests of its 20 members who provide home income and equity release plans. It was launched in 1991 to promote safe schemes. At present, 90% of the equity release market (in volume terms) is represented by SHIP members.

SHIP’s current 20 members* are: Bradford & Bingley plc, Bridgewater Equity Release, Bristol & West Mortgages, Coventry Building Society, Hodge Equity Release, Home & Capital Trust, In Retirement Services, Just Retirement, Key Retirement Solutions, National Counties Building Society, New Life Mortgages, Northern Rock, Norwich Union, Partnership Home Loans, Prudential, Retirement Plus, Standard Life, Stonehaven Equity Release, Stroud and Swindon Building Society, Tomorrow.