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Equity Release Council

  

    What Is The Equity Release Council?

    Initially known as the Safe Home Income Plans (SHIP), the Equity Release Council is an unregulated organizational body of trade that’s consumer centric and focuses on representative lobbying, leading and setting high standards of awareness and service for consumers on how housing wealth can help various financial challenges.

    The Equity Release Council has carried on to represent the equity release sector for over 30 years and it exists to promote higher qualities of practice when advising people on equity release, which has precautions safeguarding consumers at its core.

    The set standards and safeguards have enabled the sector to grow immensely, which has given financial advisers and their client’s enormous confidence in the products and dispelled contradictory myths regarding equity release. The public has sufficiently been getting educated about potential access to the wealth accumulated in their home and its variety of uses.

    The elegant reputation and demeanor of the brand has been developing significant trust in its membership, bringing the industry together and helping solidify its voice, which are the providers of equity release schemes, solicitors, financial advisers, surveyors, consultants, and other industry professionals who are all dedicated to the Principles guiding their membership.

    The Equity Release Council builds on the unified voice of its members, but remains independent of the specific individual directives of member firms and particular sectors of the equity release market.

    What Are Core Functions of the Council?

    To Provide you with all the information that you will need about equity release and similar products

    To safeguard and protect your interests as consumers who are considering getting equity release.

    To raise equity release awareness as a retirement option for more income

    To represent over 180 firms and over 500 individuals in membership with the equity release industry, including financial advisers, lenders, solicitors, and surveyors.

    Equity release has become much safer now because of several policies introduced by the Equity Release Council. Today the sector is flourishing with services reaching to well over 500,000 consumers, and it has issued loans of more than £30bn since 1991.

    Customers have been enjoying exceptional satisfaction rates, and 2019 saw a record year for both the industry and growth in Council membership. This is showing a sustained period of growth for the sector and powerful interest has continued from the media and consumers through 2020, which is being underlined by several financial services household names joining the market.

    The Council dedicates itself to spread awareness of how housing equity can help people in later life, whether for funding of care, supporting family, or to enrich one’s lifestyle. The equity release industry has given politicians and policy makers many pragmatic solutions covering a variety of socioeconomic challenges.

    Who Are Equity Release Council Members?

    The Council remains supported by a framework of contributors primarily drafted from the membership and has deep knowledge and experience regarding the sector and the socio-economic environment.

    Articles of Association ensure the directors appointed onto the Main Board of the Equity Release Council remain responsible for managing the Council’s operations. There are currently nine members chosen from within the membership, on a cycle of two-year terms of office. There are also four directors appointed by those elected to oversee the running of the Council which include the chairperson, the Chief Executive Officer, the Standards Board chairperson and the Chief Operating Officer.

    What are the Rules?

    The Equity Release Council’s rules affirm that both you and your partner may live in your home for life, or until you go into permanent care. You also reserve the right to move and transfer the equity release plan without having to pay financial penalties.

    What Is "No Negative Equity Guarantee"

    With the most popular scheme of equity release, a lifetime mortgage, you only pay interest on the amount you borrow. Hence the longer you live, the more interest compounds and grows. As a result, a lifetime mortgage might reduce the value of your estate and also affect your entitlement to benefits. Your trusted adviser will walk you through the impact of this before you go forth.

    The No Negative Equity Guarantee will ensure that the amount of the mortgage, along with any accumulated interest, will never go above the value of your home. It means you as a borrower remains protected if there is a downturn in the housing market and the house reduces in value, making the amount of the mortgage higher than the amount it can sell for at the time of repayment.

    The No-Negative-Equity Guarantee ensures that you do not leave any lifetime mortgage or home reversion debt as a liability for your dependents after you die or go into permanent care.

    Regulation of Advice by the Financial Conduct Authority

    All equity release advisers and brokers, regardless if it’s a lifetime mortgage or a home reversion scheme, remain regulated by the Financial Conduct Authority (FCA), which enforces rules about what providers need to tell you about equity release in their literature and service provision.

    Nigel Waterson, former coordinator of the Equity Release Council, said:

    “Foremost, it is important to you speak with a qualified adviser who belongs to the Equity Release Council. They’ll provide you with professional guidance and will ensure that you can consider all your options.”


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