Is Equity Release safe?

Is Equity Release safe?

The Equity Release Council is the industry body for the equity release sector. Born from an expansion of the remit of SHIP (formerly Safe Home Income Plans) the Equity Release Council represents the providers, qualified financial advisors, lawyers, intermediaries and surveyors who work in the equity release sector.

All members abide by a strict Code of Conduct which ensures the following aspects:

RIGHT

TO REMAIN

Customers have the right to remain in their property for life provided the property remains their main residence.

CLEAR

PRESENTATION

Customers will be provided with fair, simple and complete presentations of their plan.  This means that the benefits and limitations of the product together with any obligations on the part of the customer are clearly set out in the literature.  It should include all costs that the customer has to bear in setting up the plan as well as the tax implications, their position on moving house and the effects of changes in house values on their loan.

NO

NEGATIVE EQUITY

All Equity Release Council plans carry a ‘no negative equity’ guarantee i.e. you will never owe more than the value of your home.

YOUR

SOLICITOR

The customer’s legal work will always be performed by the solicitor of his or her choice.  In all cases, prior to the completion of the plan the solicitor will be provided with full details of the benefits the client will receive.  The solicitor will be required to sign a certificate to the effect that the plan has been explained to the client fully and that they understand the risks and benefits of the plan.

ERC

CERTIFICATE

The Equity Release Council certificate will clearly state the main cost the householder’s assets and estate e.g. how the loan amount will change, or whether part or all of the property is being sold.

MOVING HOUSE

Customers have the right to move their plan to another suitable property without any financial penalty.