This is an important stage in the process of getting the home reversion definition onto the statute book and on the path to being regulated by the FSA. UK equity release industry body, SHIP (Safe Home Income Plans), which represents 90% of the equity release industry, welcomes the Government’s progress.
The decision to regulate home reversion schemes means that all equity release products will be offered within the same market framework and consumer protection.
Graeme Marshall, Chairman of the SHIP Reversions Board, said: “SHIP welcomes this further move towards creating a level playing field for the sale of home reversions alongside lifetime mortgages. We look forward to seeing the draft definition and hope that the government will demonstrate its support for the equity release market by moving the relevant legislation rapidly through the parliamentary process.
“We are also pleased to see that the government has taken note of the role SHIP is playing in forming a bridge towards the introduction of regulation of the home reversion product.
“As the representative of the major home reversion product-providers, SHIP also looks forward to playing a constructive role in contributing to the form of the regulation.”