The Safe Home Income Plan scheme (SHIP) is a guarantee scheme that applies to Equity Release schemes offered by the majority of reputable Equity Release scheme providers.
Here we take a more detailed look at Safe Home Income Plans (SHIP), and how the SHIP scheme works, together with the potential benefits and drawbacks, details of the SHIP code of practice, and how Shire Direct can help with a Safe Home Income Plan!
Table of Contents:
So, what exactly is a Safe Home Income Plan scheme (known as SHIP for short)? Well Safe Home Income Plans are a guarantee scheme that applies to Equity Release schemes offered by the majority of reputable Equity Release scheme providers.
There are two main types of Equity Release products covered by the SHIP scheme, and these are:
For further information on these products, please check out the following information pages:
The Safe Home Income Plan scheme (SHIP), is a company set up by the majority of the reputable and leading Equity Release product providers, to act as the trade body for this type of regulated Equity Release schemes.
SHIP was formed in 1991 and is dedicated to:
It's probably worth noting that the term "Home Income Plan" within the context of SHIP, merely refers to a scheme that utilises the value of a property to generate income or a capital lump sum, as opposed to any particular equity release mortgage product or service.
The advantages will depend upon the type of SHIP Equity Release Plan used, but some of the main features are listed below
Importantly, all SHIP Members are bound by a strict Code of Practice that will ensure that a solicitor of the borrowers choice will always complete the legal work, and who will before completion, sign the SHIP Certificate to confirm the scheme has been fully explained to the borrower.
One of the main considerations is that all SHIP Plans contain a "No Negative Equity" guarantee. This means that the borrower will never owe more than the value of his home, and as a result is guaranteed right of residence free from the fear of being repossessed. Infact it provides guaranteed occupancy for life.
Yes there are!
Firstly, the receipt of additional income or capital could impact on any benefits that you are currently receiving, and may mean that some or all of these will be lost!
The main benefits that could be affected include for example:
There is also a possibility that because of increased income or savings that you may have to pay more Income Tax.
Depending on the type of SHIP Equity Release Scheme that you have, there are other aspects to take into account. For example, if you have a Home Reversion arrangement, you will automatically surrender ownership of your home, although you will retain a lifetime tenancy in the property. Similarly, a Home Equity Release lifetime mortgage plan could eventually deplete any collateral you may have had for leaving to your family or other beneficiaries. However, with both Home Reversion plans and Lifetime Mortgages, it is possible to gear the transaction so that a minimum amount will be available for distribution through your Estate.
All SHIP members must adhere to the following:
Members also guarantee that you will:
So an Equity Release plan covered by SHIP, guarantees that you cannot lose your home - whatever happens to the stock market, interest rates, or to the balance of your lifetime mortgage plan.
We certainly can!
Both the law, and SHIP now require all Equity Release mortgages to be carried out only by suitably qualified Advisors, and Shire Direct has specialist Advisors who are professionally qualified in Regulated Equity Release schemes.
So, if you are interested in finding out more about SHIP Equity Release products, then don't hesitate to call one of our specialists. We'll carefully assess your needs and requirements, and explore all the appropriate alternatives that meet your aspirations and circumstances.
You'll find our service to be friendly and professional, helpful and not the slightest bit stuffy, and we have an enviable reputation for high standards of customer care. We pride ourselves in having the approach, the skills and the products to ensure you have advice and a recommendation only on the most suitable product for you!
Our Advisors are available on Freephone 08000 282 281 until 10pm everyday - including weekends, alternatively you can also enquire online at any time. So get in touch today, for friendly, professional, expert help and advice, you'll be glad you did!
That wraps up our look at SHIP (Safe Home Income Plans), together with their possible advantages, and disadvantages. We hope we managed to answer any initial questions you may have had. Don't forget we're only ever a free telephone call or a couple of mouse clicks away and would be delighted to help in any way we can.
This Equity Release product may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks, ask for a personalised illustration.
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