Confusion between sale-and-rent-back and equity release

Safe Home Incom Plans (SHIP), the industry body that was set up by the leading plan providers for the protection of plan holders, found that some sale-and-rent-back companies were portraying themselves as a form of equity release. However, unlike the sale-and-rent-back industry, equity release which includes lifetime mortgages and home reversion plans are fully regulated by the Financial Services Authroity (FSA) giving plan holders peace of mind that comes with a fully regulated industry.

SHIP has therefore set up a check list to clear up the confusion because unlike sale-and-rent-back schemes all equity release plans come with the guarantee that you can remain in your home until you pass away or move into long-term care, with no fear of repossession.

For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:

Or use the comments box below to ask a question.

Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.

Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.

Important things to consider about equity release:

• Equity release could affect your current or future entitlement to means-tested benefits
• Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away

Related posts:

1. Financial Services Authority to Regulate Sale and Rent Back Schemes
2. FSA Regulation Sees Sale-and-Rent Back Rogues Facing Fines & Even Jail
3. What is a Home Reversion Plan?
4. Beginners guide to Equity Release Loans