Expert VerifiedWhat Is SHIP? A Guide to Safe Home Income & Equity Release Plans in 2025
- Last Updated: 05 Aug 2025
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Be aware. Equity release comes with drawbacks which are important to think about. Lifetime mortgages are secured loans. Compound interest means the amount you owe can grow quickly. Equity release reduces your estate's value and may impact means-tested benefits.Key Takeaways...
- SHIP, now renamed the Equity Release Council (ERC), acts as the regulatory body for the UK's equity release industry, ensuring fair consumer practices and enforcing strict professional standards for its members.
- Member companies include recognized names like Legal & General, Aviva, and Canada Life.
- Only equity release plans offered by ERC members are overseen and protected by the council, making it essential to verify membership before proceeding with a plan.
Have you heard about SHIP equity release but are wondering what it is, and if it is still relevant in 2025?
With £6.2bln released in 2022,1 staying on top of the latest industry information is important.
Luckily, we have done the research for you.
In This Article, You Will Discover:
Equity release has changed significantly over the years thanks to SHIP.
What Is SHIP in Equity Release & How Does It Protect Home Income Plans?
SHIP, or Safe Home Income Plans, is an industry body in the UK that represents the majority of equity release providers.
The primary role of SHIP is to implement safeguards and standards to protect consumers who utilise equity release plans.
SHIP values its commitment to responsible equity release, ensuring that all members provide transparent and fair services.
In 2012, SHIP rebranded as the Equity Release Council (ERC), broadening its original remit.
The ERC continues to promote safe equity release practices, providing a set of guarantees for homeowners including the right to remain in their property for life and the assurance of no negative equity.
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Explained: The SHIP Equity Release Guarantee for Safe Home Income Plans
The SHIP equity release guarantee can be explained as a code of practice designed to ensure the safety of the equity release industry and its clients.
Established in 19911, the body is committed to promoting safe home income plans and ensuring the protection of plan holders.
Launched in response to the investment schemes on the market in the late 1980s, which left many older people struggling financially, SHIP was the first trade body to initiate the supervision of home reversion schemes.
SHIP (now known as the Equity Release Council) now represents over 90% of the equity release market.2
Equity release providers who follow the SHIP code of practice must abide by the following rules...
- Provide a simple, fair, and complete presentation of its schemes.
- All legal work must be performed by a solicitor of the client's choice.
- Clearly state all costs involved.
- Provide a "No Negative Equity" guarantee. Meaning the homeowner will never owe more than the value of their home.
SHIP members can also guarantee that homeowners have the right to live on their property for life and will receive cash in the form of a lump sum or regular income payments.
Understanding the safety measures associated with releasing equity from your home is crucial to making informed financial decisions.
Equity Release for Over-80s: Tailored Plans & Key Considerations
For those over 80, equity release can provide financial support without the need to downsize or disrupt your home life.
However, it's essential to understand how age may impact your options.
Most providers offer tailored lifetime mortgages for older applicants, often allowing higher release amounts based on life expectancy.
This flexibility can be beneficial, but it’s wise to compare plans, as terms and interest rates may vary significantly depending on the lender and product type.
Additionally, it’s crucial to factor in inheritance implications and potential impacts on benefits.
Higher loan amounts can sometimes mean more interest accumulation, which may reduce the equity available to leave behind.
For those concerned about family inheritance, look for plans with ‘inheritance protection’ features, allowing you to secure a portion of your home’s value for loved ones.
Consulting a financial advisor or equity release specialist can help you weigh the pros and cons specific to your circumstances.
SHIP Sets Sail
The equity release market saw massive growth from 1965, when the first reversion scheme was launched (now known as Hodge Equity Release), to the late 1980s.
Unfortunately, things took a turn for the worse in the late 80s when new companies on the market launched home income plans which invested the cash taken out.
These investments were negatively affected by the stock market crashing and interest rates increasing, which caused many people to lose their homes or land in a negative equity situation.
In 1991, home income plans were banned by regulators, leaving equity release with a tarnished reputation.
To save the industry, a new industry body, SHIP, was launched.
Leading equity release providers came together to formulate a resilient code of conduct for the sales and advice process and critical features for safe plans, such as a no-negative equity guarantee.
By 2006, there were already 21 providers following the SHIP code of conduct.
These providers were...
- Allchurches Life
- Hodge Equity Release
- Home & Capital Trust
- GE Life
- Bridgewater
- Norwich Union (now Aviva)
- Northern Rock
- Key Retirement Solutions
- Stroud & Swindon
- Portman
- Mortgage Express
- National Counties Building Society
- Prudential
- New Life Mortgages
- Standard Life Lifetime Mortgages
- In Retirement Services (Reversions)
- Just Retirement Ltd
- Bristol and West Mortgages
- Partnership Home Loans
- Retirement Plus
- Stonehaven Equity Release
Lobbying Power
In 2004, the government decided to regulate lifetime mortgages.
However, there were still no official regulations for home reversion schemes.
SHIP pushed for regulation of both schemes by establishing an influential complaints board and launching its own home reversions code to protect consumers.
The lobbying was a success, and as of April 2008, home reversion schemes were formally regulated.
Rise of Professionalism
In 2007 SHIP announced that it would only be accepting business from advisors with the correct equity release qualifications.
Determined not to compromise its stance on providing the highest quality consumer protection, it later (in 2008) decided that it would no longer accept business from advisers without a home reversion qualification.
SHIP Relaunches as the Equity Release Council
In 2012 SHIP relaunched as the Equity Release Council (ERC)3 and expanded its membership from equity release providers to advisors, lawyers, intermediaries, surveyors, and other interested parties.
All aspects of equity release advice are now covered by the council, which is committed to consumer education and protection.
The Equity Release Council's role...
- Represent members across the equity release industry, from lenders to firms and individual financial advisers, solicitors, and surveyors.
- Promote a high standard of conduct and practice among equity release providers.
- To protect the interests of homeowners either considering or in the process of releasing equity.
- To ensure that the process of releasing equity is better understood.
The ERC hopes this rebrand will help promote the sector and educate consumers considering releasing equity from their property.
Are Equity Release Schemes Safe? Understanding Risks & Protections
Equity release schemes in the UK have built-in protections to help keep your investment secure.
Plans regulated by the Financial Conduct Authority (FCA) must follow strict guidelines designed to protect borrowers, including the No Negative Equity guarantee, which ensures you’ll never owe more than your home eventually sells for.
The Equity Release Council, previously known as SHIP, further sets out standards for member companies, aiming to uphold the safety and transparency of all plans.
While these protections are in place, there are still aspects to consider carefully.
Interest rates on lifetime mortgages can affect the total amount owed, potentially reducing the estate’s value over time.
To manage this, look for flexible plans offering optional interest repayments or inheritance protection options.
By consulting an equity release adviser who follows these standards, you can choose a scheme with peace of mind and confidence in the safeguards.
Common Questions on SHIP
SHIP, which stands for Safe Home Income Plans, was a trade body in the equity release industry that set high standards and safeguards for providers and consumers.
This body is now known as the Equity Release Council (ERC), which ensures that equity release plans are fair, transparent, and secure.
By being a member of the ERC, providers must adhere to a strict code of conduct, including offering a No Negative Equity guarantee and the option for consumers to remain in their home for life.
The ERC provides peace of mind to those considering equity release by promoting trust and ethical practices within the industry.
SHIP, now the Equity Release Council (ERC), provides essential protection for your equity release plan.
As a member of the ERC, your provider is required to offer a No Negative Equity guarantee, which means that you will never owe more than the value of your property.
This protects you and your beneficiaries from any potential debt. Additionally, the ERC ensures that you have the right to remain in your home for life or until you need long-term care, providing you with security and peace of mind.
By choosing an equity release plan from an ERC member, you can have confidence in the protection and fairness of your financial decision.
Several reputable companies are members of the Equity Release Council, SHIP’s new incarnation, in the equity release industry.
These include Aviva, Legal & General, LV=, and Just Group, among others. Being a member of the ERC demonstrates a commitment to responsible lending and ethical practices.
When considering equity release plans, it is important to choose a provider who is a member of the ERC, as they adhere to high standards set out by the trade body.
This ensures that your equity release journey is secure, transparent, and guided by the principles of fairness and consumer protection.
SHIP, now known as the Equity Release Council (ERC), plays a crucial role in the equity release process by promoting consumer protection, transparency, and fairness.
As a trade body, the ERC sets high standards and safeguards for providers, ensuring that they follow a strict code of conduct.
By choosing an equity release plan from an ERC member, you can be confident that your financial interests are protected.
The ERC requires its members to offer a No Negative Equity guarantee, enabling you to safeguard the value of your property and protect your beneficiaries from potential debt.
With the ERC, the equity release process becomes more reliable, trustworthy, and secure.
Not all equity release plans are protected by SHIP (now known as the ERC).
However, ERC membership is a strong indicator of a provider’s commitment to responsible lending and consumer protection.
It is highly recommended to choose an equity release plan from an ERC member to ensure that your plan comes with the necessary safeguards and protections.
By selecting a provider who is a member of the ERC, you can have confidence in the fairness, transparency, and security of your equity release journey.
Always check whether a provider is a member of the ERC before proceeding with an equity release plan.
SHIP in Brief
SHIP (now known as the ERC) is a trade body promoting safe home income plans and protecting equity release plan holders.
If your selected provider is a member of SHIP (or ERC), it must abide by certain minimum standards in terms of the advice it gives you and its product's terms.
Now that you know what SHIP is, you can see why choosing an equity release provider with a SHIP (now ERC) membership, is not only a safe decision but the only decision.
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