Who are the Equity Release Council (ERC)?

How Can the Equity Release Council Members Help You?

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?

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 Oct 2021?

We’re here to help you discover:

  • 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 Oct 2021.
  • 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? Find out NOW!

What Is Equity Release?

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

What Is the Role of the Equity Release Council?

Great news, things are different to years gone by! With the formation of the Equity Release Council in 1991, the market became a whole new world.

Read more on this: How Ethics Changed the Equity Release Market

The role of the Equity Release Council is to regulate equity release firms and protect the interest of the homeowner. 4 of its responsibilities include:

Something to consider: Common Pitfalls With an Equity Release Plan

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?

ERC members also have to abide by a strict code of conduct:

  • The borrower has a right to remain in the property for life until they pass away.
  • The borrower will be offered clear, concise paperwork that includes all 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 stating that the plan has been clarified and all risks are understood.
  • The client can move their plan to another property without penalties.
  • The Equity Release Certificate defines the cost to the client’s asset and estate.
  • Equity release plans carry a “NO NEGATIVE EQUITY GUARANTEE.”

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’s a “No Negative Equity Guarantee?”

This guarantee protects you so that your estate doesn’t have to pay more than what is owed to your equity release provider. When your lifetime mortgage plan comes to an end, the lender will sell your house and settle the loan amount plus any interest. Any additional funds will be a part of your final estate.

Great news!

If the estate market value decreases and the money can’t repay your mortgage, the lender won’t request more cash from your estate or heirs. Since you’ll be protected by the ‘no negative equity guarantee’, the lender won’t be legally permitted to do so. Always consider the equity release companies that will offer you this protection.

Check out: How to Switch to a Better Equity Release Plan

Got Questions? Check These Out First

Who Are the Equity Release Council?

What Are the Product Standards Set 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 home.

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

It is vital in Oct 2021 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.

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.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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Written by
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.

Written 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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Written by
Katherine Read
Financial Planning Reporter

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.

Written by
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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