To support the introduction of regulated equity release products in Guernsey, the Guernsey Financial Services Commission (the Commission) has launched a set of rules and guidance for equity release products sold in the Bailiwick. The rules were developed following a consultation which finished in February 2025 and will come into effect from 01 January 2026 when the amendments to the Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022 are enacted.

The Equity Release Council (the Council) and its members supported the Commission as it developed its new set of rules and guidance. Guernsey’s new regulatory framework includes five product standards that equity release customers benefit from in the UK which are championed by the Council, namely:

· Interest rates must be fixed or if variable, capped 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.

· Option to move home – customers must be allowed to move to a suitable alternative property and ‘port’ their lifetime mortgage if they meet lender’s criteria.

· No Negative Equity Guarantee – If the terms and conditions of the loan are met, the borrower or their estate will never owe more than the property is worth.

· Ability to make repayments – Customers must have the ability to make repayments without incurring any charges, subject to lending criteria of the provider.

The Bailiwick of Guernsey’s regulatory framework for equity release follows the established regime in the UK, set by the Financial Conduct Authority’s (FCA) rules and the Equity Release Council’s member standards. UK equity release firms authorised by the FCA would be able to offer equity release products into the Bailiwick market under equivalence arrangements from 1 January 2026.

Dr Jeremy Quick, Director of Banking and Insurance Division at the Commission, said “The equity release framework, which will come into effect from January 2026, is a crucial first step towards these products becoming available locally. We are confident that we have created a framework that is attractive to new market entrants. Clearly, much will depend on consumer demand and equity release providers’ appetite to enter the market here. The consumer protections we’ve introduced within the regulatory framework will mean that when the time comes, homeowners can enter into these arrangements with confidence.”

Kelly Melville-Kelly, Director of Risk, Policy and Compliance at the Council said: “We are delighted to have been able to support the Commission as it develops the rules and guidance that regulate equity release in the Bailiwick of Guernsey. The Council’s product standards provide people across the UK with the confidence to explore their choices when it comes to accessing housing equity and the fact they have served to inform the Commission’s approach highlights their value in supporting market growth.”

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About the product: Equity release allows older people to access the wealth in their homes, without necessarily having to sell or move. Lifetime mortgages make up more than 99% of the market. They enable people to borrow against their homes without making repayments unless they choose to. The loan and interest, or part thereof, is paid when the customer dies or goes into long term care. Since 1991, more than 950,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.

About the Council: The Council is the representative trade body for the UK equity release market. Plans that meet the Council’s standards come with six product safeguards: no negative equity guarantee; fixed or capped rates for life; secure tenure for life; the right to port; the right to make overpayments and no early repayment charge if you move into care provided a medical certificate is provided. The 6th safeguard, which governs organisations’ approaches to care, was introduced in May 2025 after the Commission’s consultation closed. In the UK, these safeguards are underpinned by mandatory independent legal advice, which ensures the customer understands the risks and implications of the plan.

About the Commission: The Guernsey Financial Services Commission is the regulatory body for the finance industry in the Bailiwick of Guernsey. The Commission seeks to secure good regulatory outcomes with integrity, proportionality, and professional excellence; thereby generating confidence in the Bailiwick as a jurisdiction. More information regarding the Commission’s role can be found on its website.

More information: Visit www.equityreleasecouncil.com; call Lee Blackwell, Director of Communications and Marketing at the Equity Release Council on 07950798072; email [email protected]