The equity release council (ERC), launched in 2012, is a UK organisation that promotes safe equity release products and ensures to safeguard the interest of the homeowners who opt to take out equity release from different UK lenders.
The ERC is supported by leading providers of equity release schemes and works with the UK government. Each member of the ERC council that offers equity release products, is bound by its comprehensive principles which aim to make the product safe for its consumers.
ERC Statement of Principles
The ERC statement of principles offers peace of mind to equity release companies and their consumers. The comprehensive principles mention that the members will:
• Make sure that their actions promote confidence and awareness in equity release
• Act at all times in good faith, with the best interest of consumers in mind, treating them fairly in all their actions
• Ensure conflicts of interest are pointed out quickly and managed in all fairness
• Deliver acceptable outcomes for consumers from the start of the equity release, through every point of contact during the life of the product
ERC Product Standards
According to ERC, the equity release product standards are as follows.
• Interest rates must be fixed for lifetime mortgages. A cap should be used for variable interest rates till the life of the product.
• You have the right to stay in your home until you move into long-term care or you pass away.
• The equity release product must have “No negative guarantee”. It means that when the property is sold, and the agent and solicitor fees have been paid, if the amount left is not enough to repay the outstanding loan, you won’t be liable for them.
• You can move to a new property if the new property is acceptable by your equity release provider.
Because we play by the book we want to tell you that...
1. We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you, that’s why we pass you onto an Expert.
2. A lifetime mortgage is a loan secured against your property. With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care.
3. With a lifetime mortgage you’ll still retain full ownership of your home.
4. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
5. Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.
6. Unless you decide to go ahead, Mortgage Advice Bureau Later Life’s service is completely free of charge as their fixed advice fee of £1,295 would only be payable in completion of a plan.
7. ClearKey is an independent marketing website which only acts as an introducer to companies who offer advice on various financial plans, products and services.
8. Our partners are authorised and regulated by the Financial Conduct Authority.
9. ClearKey.co.uk are not authorised to give any advice and we are not liable for any financial advice provided by or obtained through a third party.
10. Life insurance products attract terms and conditions. Price information contained within this website are for illustration purposes only. You will receive a full policy document upon application which will set out the terms, conditions and limitations of cover provided under the plan.
11. Your home may be at risk if you do not keep up repayments. Think carefully about securing debt against your home. When consolidating existing borrowing be aware that extending the term could increase the amount repaid.
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