You are here: Home - News -

SHIP welcomes addition of Northern Rock to panel

  • 01/08/2000
  • 0
Northern Rock has become the first mortgage lender to join Safe Home Income Plans (SHIP), the self-r...

Northern Rock has become the first mortgage lender to join Safe Home Income Plans (SHIP), the self-regulatory organisation set up to promote safe equity release schemes and protect policyholders.

Its addition brings the number of affiliated members to eight. The other members are Allchurches Life, BPT Bridgewater, Carlyle Life, GE Life, Home & Capital Trust, NPI In-Retirement Services and Norwich Union.

Northern Rock launched its equity release scheme last spring. The Home Equity Release mortgage is an interest-only mortgage allowing over-60s to access the capital tied up in their property without having to move. Clients have the choice of the standard plan, which provides a cash lump sum, or the Cash Plus plan, which in addition to a lump sum provides a guaranteed monthly cash release.

The former has a rate of interest of 8.2% fixed for the loan’s duration and the latter has a rate of 7.99%. The rate will track the Bank of England base rate +1.99%, guaranteed not to exceed 8.99% for the life of the loan.

The loan is repaid when the policyholder dies or moves into residential care, and if there is insufficient equity in the property at this time the lender guarantees to meet the shortfall. If there is value in excess of the sum to be repaid, this will be passed on to the client’s estate.

Other safeguards include a pledge from Northern Rock that the client can continue to live in the property, they never have to pay back more than the sale proceeds of the property and that the property will not be repossessed, even if the accumulated debt exceeds the property value.

Rachel Ramsden, senior product manager, mortgages, at Northern Rock, said: “The safeguards show from the outset our determination to address any concerns the elderly might have about unlocking their home’s capital. Membership of SHIP reinforces our commitment to deliver a lifestyle product of the highest integrity.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Todays Mortgage Administrator iVent programme: author Chris Croft discusses communication skills, @AldermoreBank's…
  • My week on Twitter 🎉: 104 Mentions, 47.7K Mention Reach, 66 Likes, 50 Retweets, 41.6K Retweet Reach. See yours with…
  • Our first day of the Mortgage Administrator iVent has been a great success – don’t forget to join us again tomorrow…
  • RT @DanielleDennis9: Our first ever virtual event is looking great! Make sure you log in today, take a look around the stands and watch the…
Read previous post:
B&W mix-and-match protection

Bristol & West (B&W) is unveiling a new protection range at the end of June which comprises both adv...