Safe Home Income Plans (SHIP) are one way of protecting equity release customers. The SHIP code of conduct means that any organisations that work with SHIP in offering equity release schemes must abide by a series of rules which ultimately protect equity release customers. Therefore for any individual or couples who are considering committing to an equity release scheme, it is important they deal with scheme providers who abide by these rules.

Equity release allows people to access some of the equity within their home without having to sell their property. This is ideal for retired people who wish to have access to some of their equity and yet retain their own property.

A key part of the SHIP rules state that home owners must have a lifetime residence guarantee for their property. This gives the customer the peace of mind that they will always have a roof over their heads.

The criteria laid down by SHIP also stipulate that providers must be completely open, clear and honest about their contracts. The contract must allow the home owner to change property to another suitable property without any financial penalty being imposed.

Perhaps the most important part of the SHIP Code of Conduct in the current depressing housing market is that customers are protected by a 'no negative equit' guarantee which means that even if the property price slumps, a customer can never owe more than the value of the home.

If you are considering an equity release scheme it is advisable to select one which adheres to the SHIP Code of Conduct.