The Equity Release Council: Your Safety Net in Equity Release

How Strict Rules and Standards Work in Your Favour

When it comes to protecting homeowners in the equity release industry, no organisation has done more than the Equity Release Council (ERC).

If you’re a UK homeowner aged 55 or over, equity release might be on your radar as a way to boost your finances and achieve your financial goals. But let’s be honest—this isn’t just any financial decision. It’s a big one.

That’s why the Equity Release Council exists: to make sure you and your estate are protected every step of the way.

So, what exactly does the Equity Release Council do, and why is it so important? Let’s break it down.

What is the Equity Release Council?

The Equity Release Council is the official industry body for the UK equity release sector. It was founded in 1991 and is completely independent, meaning its sole purpose is to protect you, the customer from equity release horror stories.

Here’s why it matters:

• It has strict rules that all members (including lenders and advisers) must follow.
• It guarantees you’ll never owe more than your home’s value thanks to the no negative equity guarantee.
• It ensures high standards across the industry, so you’re dealing with trusted professionals.

Essentially, if you choose an ERC-approved equity release provider, you can breathe easier knowing they are regulated, reputable, and required to act in your best interest.

Who Are the Members of the Equity Release Council?

The ERC isn’t just made up of equity release providers. It includes a wide range of professionals working in the industry, such as:

• Equity release lenders
• Financial advisers
• Solicitors who provide legal advice on equity release
• Surveyors who assess property values
• Consultants and other industry specialists

Every ERC member is committed to following strict rules to protect customers—now and in the future.

How Does the Equity Release Council Protect You?

The ERC has tough rules to make sure you fully understand equity release before you commit.

Here’s how it safeguards your interests:

• Independent Legal Advice – You must receive face-to-face legal advice before signing an equity release plan.
• Transparency & Integrity – Brokers, advisers, and providers must act in your best interests, ensuring you get fair and honest advice.
• No Negative Equity Guarantee – You’ll never owe more than your home is worth, no matter how much interest rolls up.
• Ongoing Oversight – The ERC constantly reviews and updates industry standards to keep equity release as safe and customer-friendly as possible.

But that’s not all. The ERC also works behind the scenes to push for policy changes, educate the public, and drive innovation in the industry.

Some of its key activities include:

• Providing clear, unbiased information on equity release.
• Publishing market reports to increase awareness of how equity release works.
• Holding talks with government officials to ensure fair regulations and consumer protections.
• Encouraging lenders to create better, more flexible products for homeowners.

The Equity Release Council’s Guarantees: What You Get

When you take out an ERC-approved equity release plan, you’re covered by a set of essential guarantees:

• No negative equity guarantee – You will never owe more than your home is worth.
• Right to stay in your home – You can live there for life or until you move into care.
• Right to move – You can transfer your plan if you decide to move to another home (as long as it meets the lender’s criteria).
• Right to make voluntary repayments – Many plans now allow penalty-free repayments to reduce your loan balance over time.
• A cap on interest rates – If you have a fixed-rate lifetime mortgage, the rate won’t suddenly rise.

These guarantees exist to give you peace of mind and ensure that equity release is a safe and secure option.

The Equity Release Council’s Principles and Outcomes

The ERC doesn’t just set rules—it also ensures that members follow key ethical principles to protect customers.

The ERC’s Core Principles:

All members must:

• Promote trust and confidence in equity release.
• Act in good faith and always put the customer’s best interests first.
• Ensure transparency in all communications.
• Provide suitable solutions based on each customer’s needs.

The ERC’s Required Customer Outcomes:

When dealing with an ERC-approved lender or adviser, you can expect:

• Fairly priced, suitable products that align with your needs.
• Support for vulnerable customers, ensuring they receive extra help.
• The right to stay in your home for life, or move, subject to the lender’s rules.
• Clear, jargon-free explanations so you fully understand your plan.

These strict protections ensure that equity release remains reliable, transparent, and consumer-friendly.

Other Protections for Equity Release Customers

The Equity Release Council isn’t the only organisation looking out for you. Several other consumer protection bodies offer additional layers of security:

The Financial Conduct Authority (FCA)

• The FCA regulates all equity release lenders and advisers.
• Any company offering equity release must follow FCA rules to protect consumers.

The Financial Ombudsman Service (FOS)

• If you have a complaint that your provider doesn’t resolve, the FOS can step in to handle disputes.
• You can escalate any equity release-related issues to the FOS for free.

The Financial Services Compensation Scheme (FSCS)

• If an equity release provider goes out of business, the FSCS may compensate affected homeowners.
• It covers bad financial advice given after October 2004 and home reversion issues since April 2007.

Together, these protections add another safety net to make sure your interests are safeguarded at all times.

Final Thoughts

Equity release is a big financial decision, but thanks to the Equity Release Council and other consumer protection bodies, it’s safer and more transparent than ever before.

By choosing an ERC-approved lender or adviser, you get guaranteed protections, clear guidance, and peace of mind that you’re making the right choice.

Want to explore your equity release options? Make sure you’re working with a trusted, ERC-regulated professional to get the best advice and products for your needs.