- Board and Governance
- Our Standards
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Our Standards
Our standards ask members to act with professionalism and integrity, providing trusted, transparent, tailored, and thorough advice and support
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- For Consumers
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For Consumer
Description
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- For Professionals
- What is Later Life Lending?
Setting Standards for 35 years
Our Standards require members to act with professionalism and integrity, providing advice and support that is trusted, transparent and tailored to individual needs.
Introduction
The Equity Release Council is the UK’s trade body for equity release and later life lending. We set robust Standards and protections that our members commit to uphold.
Our Standards go beyond regulation, providing additional safeguards designed to protect consumers and promote responsible market development.
Why are the Standards important?
Choosing to access housing wealth is a significant financial decision. The Council’s Standards exist to ensure consumers receive consistent protections and clear, responsible advice, no matter which member firm they work with.
By maintaining high and evolving standards, we help to build trust, confidence and fairness across the market.
Chair of the Standards Committee
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.
What are the Product Standards?
Only products that meet our Standards provide the protections outlined below.
If an adviser recommends a product that does not meet these Standards, they must clearly explain why and outline the associated features.
Core Lifetime Mortgage Standards
Our core Lifetime Mortgage Product Standards are as follows:
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.
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.
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.
Ability to make repayments
Customers must have the ability to make repayments without incurring any charges, subject to lending criteria of the provider.
Interest rates
Rates must be either fixed or, if variable, have a fixed cap. Both of which must be fixed for the life of the loan.
Long-term care
If a customer needs to move permanently into long-term care, whether in a care home or with relatives providing care, any early repayment charge will be waived by the Lender upon receipt of a medical practitioner’s certificate and if the terms and conditions of the loan have been met.
Independent Legal Advice
All customers taking out equity release must receive independent legal advice.
You may choose your own solicitor, find one using our Member Search Tool, or ask your adviser for suggestions.
Your solicitor will explain the full details of your plan, ensuring you understand your rights and obligations before you proceed. You will then sign a certificate confirming that this advice has been provided.
What should your adviser cover?
Your adviser must provide a fair, clear and comprehensive explanation of your later life lending plan.
This includes:
- All associated costs
- Tax implications
- What happens if you move home
- How changes in property value may affect the plan
- The benefits and limitations of the product
Advice must reflect your personal circumstances and long-term needs.
Our Consumer Charter
Our Consumer Charter sets out how you should expect to be treated, with professionalism, integrity and transparency at every stage.
