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SHIP welcomes FSA lifetime mortgages findings
3 April 2008 11:30
The equity release sector's regulatory body, Safe Home Income Plans (SHIP), has welcomed new findings indicating that the lifetime mortgage market is working well.
In its review of whether its regulation of the market was benefiting borrowers, the Financial Services' Authority (FSA) indicated that borrowers were generally obtaining information from several different sources before taking out a lifetime product.
Research also indicated that plan holders generally had a good understanding of the risks associated with equity release, or at least felt that they did, with many of them using their key facts illustration documents to clarify what these dangers are.
SHIP general director Andrea Rozario responded that lifetime plans are a highly useful way for people to release value from their homes, adding that her organisation expected the FSA's findings to be positive given the high standards of its own code of practice.
She explained that despite the general consumer friendliness and high quality of these products, they are not suitable for everyone, which is why it is heartening to see that consumers understand the risks involved before buying them.
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