We often come across clients who are asset rich but cash poor; wishing to pass on the family home to their children but not necessarily able to afford the ongoing running costs. Whilst downsizing is a possibility, Lifetime Mortgages are a way of releasing some of the capital locked within your home without the need to move. The market has developed significantly over recent years and it is possible to receive a lump sum, a regular income or a combination of the two, dependent upon your individual requirements.

The Lifetime Mortgage industry has created an independent organisation known as SHIP (Safe Home Income Plans) dedicated to protecting customers. The formation of SHIP has helped develop a new generation of products that are much simpler to understand and offer more protection. The SHIP code of conduct is as follows:

• The members of SHIP agree to provide fair, simple and complete presentation of their plans. The benefits, obligations, variables and limitations must be set out clearly in their literature, including all costs which the applicant has to pay in setting up the scheme, the position on moving, the tax situation and the effect of changes in house values.
• The client's legal work will always be performed by the solicitor of his or her choice. In all cases, prior to the completion of the plan the solicitor will be provided with full details of the benefits the client will receive. The solicitor will be required to sign a certificate to the effect that the scheme has been explained to the client.
• All SHIP plans carry a No Negative Equity Guarantee i.e. you'll never owe more than the value of your home.

At Higgins Fairbairn Advisory LLP, we only recommend products that are members and abide by the rules of SHIP.