SHIP floats exam table

Safe Home Income Plans (SHIP) has produced a qualification requirements table for intermediaries, reports Mortgage Solutions (17/3/2008).

The table, which is available on SHIP's website, lists the examinations needed to submit lifetime mortgages and home reversion plan business to SHIP's product provider members from 6 April.

Andrea Rozario, director general of SHIP, said the table had been produced to clear up any potential misunderstandings ahead of its deadline for advisers to pass their top-up exams. She said: "Confusion about the compulsory examinations needed by advisers for each aspect of equity release might have arisen as a result of Lifetime Mortgages and Home Reversions being regulated at different times."

Simon Smith, IFA at Independent Retirement Strategies, said a clarification of examinations would clear up any questions from brokers. He said: "Brokers need to know what they can and cannot advise on."

David Wright, managing director of provider Sixty Plus, said the table looked like a concerted effort by providers and bodies in equity release to provide more information to the market. He added: "Moves like this should increase trust and take up of equity release."

Abbey research hints at equity release launch

Abbey has reportedly been cancassing intermediaries regarding a potential launch into the equity release market, reports Mortgage Solutions (15/03/08).

This would not be the first time Abbey has dabbled in the equity release market, having previously joing SHIP.

Abbey also has a toe in the market through Stonehaven, although this is only a funding arrangement.

Godiva rides into equity release market

Godiva Mortgages, the intermediary arm of the Coventry Building Society, has entered the equity release market with a range of lifetime mortgages.

The range includes lump sum and drawdown products and Godiva is the first lender to offer an option with no early repayment charges.

Colin Franklin, managing director of Godiva Mortgages said: "I am delighted to be entering this growing market. Changing attitudes to retirement planning and increasing confidence in the sector, shows there is a genuine need for this type of product.

"For the first time, advisers will have access to drawdown and lump sum products without ERCs – a major step forward in the market place."

Sixty Plus comment: This is the most interesting development for some time. As the first lender to offer a product with no early repayment charges Godiva is a welcome addition. Some clients take equity release with the clear intention or repaying it in the short to medium term by moving house and downsizing. The absence of an early repayment charge that would normally be at least 5% will make equity release more appealing to some.