Who are the Equity Release Council (ERC)?

How Can the Equity Release Council Members Help You?

Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui

The Equity Release Council is a Self-Regulated Non-Profit Organisation That Safeguards the Interests of Homeowners. They Represent over 180 companies.

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Who are the ERC (Equity Release Council) & What Can They Do for You?

Who Are the Equity Release Council?

The Equity Release Council is a body formed in 1991 that oversees the equity release industry, ensuring a high standard of products and the protection of homeowners unlocking equity from their estate.

Listen up! You’re about to discover why equity release is truly safe.

With a troubled history fraught with scandal and debt, equity release hasn’t always been the best idea for retirees.

The question is, have things changed in Jan 2022?

Through this article, you’ll learn:

  • The measures taken to protect the equity release market.
  • Who is the Equity Release Council and how it works.
  • Why it’s vital to select a regulated equity release plan provider in Jan 2022.
  • The rules set out by the Equity Release Council.

We’ve spent hours studying over 28 regulated plan providers, summarised the crucial role of the Equity Release Council, and put together this comprehensive guide.

Itching to fully understand the role of the Equity Release Council?

Let’s explore!

Equity Release Explained

Before you continue reading, we’ve summed up what you’ll want to disvocer about equity release products in this short video. Check it out!

Learn More: How to Release Equity from Your Home?

What Does the Equity Release Council Do?

The role played by the Equity Release Council is to regulate equity release companies that are located in the UK and protect the interest of the homeowner. 4 of its responsibilities include:

Interesting Read: How Ethics Changed the Equity Release Market

The Council Regulates Legitimate Equity Release Providers

The Council Regulates Legitimate Equity Release Providers

The Equity Release Council is there to help you recognise the equity release companies to avoid, such as:

  • Plan providers who don’t have a ‘no negative equity guarantee.’
  • Lenders who aren’t members of the ERC.
  • Providers who charge high interest rates.
  • Lenders who charge very high repayments and who charge them early.
  • Equity release firms that give you large loan amounts before they even assess your circumstances.

Find out more: Why You Should Be at Ease With Equity Release

What’s Their Code of Conduct?

The Equity Release Council’s code of conduct includes your having the right to remain home for life, and never owing more than the value of your estate.

Here’s more details:

  • The borrower has the right to live at home until they pass away..
  • The borrower will be given clear, and concisely written paperwork which will includes details about setup costs and information on how changes in house values might affect the plan.
  • The consumer’s preferred representative steers any legal work. The borrower and their solicitor will sign a certificate confirming the plan’s certification and that all the risks are understood.
  • The client can move their plan to a different property without facing penalties.
  • The Equity Release Certificate will detail the cost to the client’s asset and estate.
  • Equity release plans carry “no negative equity guarantees“.

Are you wondering what this means? Continue reading to find out!

Read more about: The Process Involved With Getting an Equity Release Loan

What's a No Negative Equity Guarantee

What Is the ‘No Negative Equity Guarantee?’

The ‘no negative equity guarantee’ is a clause by the Equity Release Council that ensures that you, or your estate, will never owe more than the property is worth when it sells. Simply put, this promise means that you (or your estate) will never be liable for more than the property’s value when it is sold.

Must read: How to Switch to a Better Equity Release Plan

Commonly Asked Questions

Who Are the Equity Release Council?

What Are the Product Standards Put into Place by the Equity Release Council?

What Are the Equity Release Council's Roles and Responsibilities?

How Does the Equity Release Council Protect Me?

In Conclusion

Spending time working out your finances and retirement plan can be quite draining. Fortunately, the Equity Release Council is there to protect you, should you choose to release equity from your property.

The council will help prevent you and your heirs from spending too much money on interest and losing unnecessary cash.

It is vital in Jan 2022 to use a regulated and top equity release provider, and also be aware of the equity release providers to avoid, in order to release equity in a safe, and life-changing way.

You can get in touch with your financial adviser today to start your equity release journey. Make sure you use our equity release calculator and see the amount of equity you can release!

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
francis

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
nicola

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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