The Equity Release Council

Over the course of 25 years, the Equity Release Council continues to represent the equity release sector and exists to promote high standards of conduct and practice in the provision of and advice on equity

release

Equity Release Council

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Product Standards

Members are only allowed to tell you that a product meets these product standards if it meets all of them.  If you are offered or are considering a product that does not meet all of the standards, the product literature must explain which standards are not met, and give an illustration of the types of risk that this might pose for you.

• For lifetime mortgages, interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit) which is fixed for the life of the loan

• You must have the right to remain in your property for life or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract

• You have the right to move to another property subject to the new property being acceptable to your 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. 

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Independent Legal Advice

You may choose your own solicitor to carry out the legal work in connection with your plan.  Before the plan is completed, your solicitor will be provided with full details of the plan, including the rights and obligations of both parties (you and your product provider) under the contract, should you choose to go ahead.  Both you and your solicitor will be required to sign a certificate confirming that these rights and obligations have been explained to you and that you wish to enter into the plan.

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Explanation of your Plan

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