Our Standards

The Equity Release Council is a voluntary trade body whose mission is to help more over 50s to make informed choices about their property wealth by championing trusted and transparent products and advice.

Going over and above regulation to provide added protections, the Council’s Standards ask members to act with professionalism and integrity, providing trusted, transparent, tailored, and thorough advice and support.

Why are Council Standards important for consumers?

They clearly set out how the Council expects all of its members to support customers – whether it is through product design, how advice is provided or how people are treated when they decide to take out a product.

By adhering to these Standards, members ensure the products and services they provide align with the expectations of good practice, helping customers to make informed decisions with confidence.

The Council Standards (which include the Consumer Charter) are available for review at the bottom of this page and are set by the independently chaired, Standards Committee.

How does the Consumer Charter impact the support I receive?

The Consumer Charter clearly outlines what people can expect when dealing with a member of the Council.

Consumers can trust that they will receive tailored, thorough and transparent support which is designed to help them make the right choice for their individual circumstances and get the most out of any products they choose.

The Consumer Charter is available as a standalone document and your adviser will be happy to discuss this with you.

What is the Standards Committee?

The Standards Committee, an integral part of the Council, exists to set the Standards and guidance which helps to ensure that equity release products are safe and reliable for consumers.

The independent chair of the standards committee (Michelle Highman) is tasked with ensuring that the Equity Release Council is constantly driving up standards within the sector and sharing best practice and innovation so that people who use products and services from Equity Release Council members can feel confident in their choice.

“More people are living longer than ever and given the relatively modest amount of retirement savings most people have, it is becoming increasingly common to consider whether housing wealth can play a role in living better in later life finances.  Whatever that might mean to the individual person, considering their options, the Council exists to support people to do so, and the Standards help to ensure that they receive protections which go above and beyond regulation.  

“As a voluntary organisation, our members are committed to going the extra mile and we have clearly outlined in the Consumer Charter how people should expect to be treated.   We want people to trust that they will receive tailored, thorough and transparent support which will help them make the right choices for their individual circumstances.”

Michelle Highman, chair of the Standards Committee.  

What are the product standards?

Our product standards are set out below.   Only products which meet our Standards provide the protections outlined and if an adviser suggests that you should consider another product which does not meet the Standards, they need to clearly explain to you why and what the risks are.

Our core lifetime mortgage product Standards are as follows:

• Interest rates must be either fixed or, if variable, have a fixed cap. Both of which must be fixed for the life of the loan.
• Home for Life – Customers must have the right to live in their property for the remainder of their life, or until they permanently move into care. For this right to apply the property must remain their main residence for the life of the mortgage with all terms and conditions being maintained.
• Option to move home – Customers must be allowed the opportunity to move to a suitable alternative property and transfer their lifetime mortgage (subject to lending criteria at the time of move) as long as they abide by the terms and conditions of their contract.
• No Negative Equity Guarantee – The product must have a NNEG so that, provided the secured property is sold for the best price reasonably obtainable and the terms and conditions of the loan have been met, the borrower or estate will never owe more than the property is worth, after deduction of reasonable sales costs.
• Ability to make repayments – Customers must have the ability to make repayments without incurring any charges, subject to lending criteria of the provider.
• Long Term Care – If a customer needs to move permanently into long-term care—whether in a care home (commercial, NHS, or local authority) or with relatives providing care—any early repayment charge will be waived by the Lender upon receipt of a medical practitioner’s certificate and the terms and conditions of the loan have been met.

Mandatory Payment Lifetime Mortgages and Reversions have other product Standards which are outlined in the document below.

What role does legal advice play when taking out equity release?

All customers who take out equity release need to receive independent legal advice.   You can choose your own solicitor, find one on our ‘find a member page’ or ask your adviser for their suggestions.

Your solicitor will be responsible for talking you through the full details of the plan to ensure that you are comfortable with your choice and understand all of your rights as well as obligations.  Once this has happened, you will then be asked to sign a certificate confirming that these rights and obligations have been explained to you and that you wish to proceed.

What can you expect your adviser to cover as part of their advice?

You will be provided with a fair, simple and complete presentation and explanation of your equity release plan. The benefits and limitations of the plan will be clearly set out, together with your obligations under the terms of the contract. You will be given information about:

• all the costs that you will have to bear in setting up the plan;
• the tax implications;
• what will happen if you wish to move to another property; and
• how changes in house values may affect your plan.