The Equity Release Council is the industry body representing the lenders, providers, qualified financial advisers, lawyers, intermediaries, and surveyors who work within the equity release sector. It was launched in May 2012 and is dedicated entirely to the protection of plan holders.
Members display the Equity Release Council logo in their brochures and other printed material as a guarantee to their clients.
All participating companies are pledged to observe the Equity Release Council’s Statement of Principles, which puts in place a number of safeguards and guarantees for consumers.
In addition to these Statements of Principles, members voluntarily adopt further safeguards, including:
Product standards
All of the following standards must be met in order for a company to state that their product meets these standards:
- Interest rates for lifetime mortgages must be fixed or, if they are variable, must be ‘capped’, for the life of the loan
- Providing the property remains your main residence and you adhere to the terms and conditions of your contract, you must have the right to remain in your property for life or until you need to move into long term care
- You have the right to move to another property subject to the new property being acceptable to your lender / product provider as continuing security for your equity release loan
- The product must have a ‘no negative equity guarantee’. This means that when your property is sold, and agents’ and solicitors’ fees have been paid, even if the amount left is not enough to repay the outstanding loan to your provider, neither you nor your estate will be liable to pay any more.
All clients taking out new plans which meet the Equity Release Council standards must have the right to make penalty free payments, subject to lending criteria
