If you’re researching Lifetime Mortgages, you’ve probably come across references to the Equity Release Council. You might see advisors and lenders highlighting their membership by displaying the Council logo on their websites or mentioning it in their literature.
But what does it actually mean to be a member of the Equity Release Council, and why should you care?
As a member of the Equity Release Council myself, I promise you this membership is more than a badge or marketing tool. It represents a commitment to rigorous standards, customer protection, and ethical practice that directly benefits you as a customer.
Let me explain what the Equity Release Council is, what membership means in practice, and why choosing a Council member matters when making such an important financial decision.
What Is the Equity Release Council?
The Equity Release Council is the industry body representing the UK equity release sector, which includes Lifetime Mortgages and reversion plans. Established in 1991 (originally as SHIP – Safe Home Income Plans), the Council exists to protect customers and maintain high standards across the industry.
The Council brings together equity release advisors, lenders, solicitors, and other professionals who agree to follow strict standards and provide specific safeguards. Membership isn’t automatic – firms and individuals must meet stringent criteria and commit to ongoing compliance.
Today, the Council represents the vast majority of the equity release market. Most reputable lenders and advisors are members, which means most Lifetime Mortgage products available meet Council standards.
The Equity Release Council Standards
Being a member of the Equity Release Council means adhering to a comprehensive set of mandatory standards designed to protect customers. Key Standards Include:
- Product Standards
All equity release products from member lenders must meet specific criteria ensuring they’re fair, transparent, and include essential customer protections. - Advice Standards
Advisors must be qualified, provide clear information, properly assess suitability, and put customer interests first. - Process Standards
The application and completion process must follow established procedures, ensuring customers understand what they’re agreeing to. - Ongoing Compliance
Members are regularly monitored and must maintain standards continuously, not just at the time of initial membership.
These standards evolve as the market develops and customer needs change. The Council regularly reviews and updates requirements to maintain the highest levels of customer protection.
The No Negative Equity Guarantee
Perhaps the most essential protection for customers is the no negative equity guarantee that all member lenders must provide. This is a fundamental safeguard that gives peace of mind to anyone considering releasing equity from their home.
What the No Negative Equity Guarantee Means
The amount you owe can never exceed your home’s worth. When your property is eventually sold to repay the loan secured against it, if the sale proceeds don’t cover what you owe, you (or your estate) will never have to make up the difference. The shortfall is written off.
This protection is enormous. It means that even if property prices fall, interest compounds significantly, or your loan grows larger than anticipated, you’re protected from negative equity. Your beneficiaries won’t inherit debt. The worst-case scenario is that no further funds remain after the loan is repaid.
This guarantee must be written into the product terms for all member lenders. It’s not optional, and it can’t be removed. This single protection makes Council members fundamentally safer than unregulated alternatives.
Right to Remain in Your Home
Another critical guarantee from having a product recommended by a member of the Equity Release Council is the right to remain in your home for life, or until you move into permanent long-term care.
You cannot be forced to sell your property to repay the loan during your lifetime. As long as the property remains your primary residence and you maintain it in reasonable condition, you have absolute security of tenure. This applies even if your circumstances change, property values fluctuate, or you live far longer than the lender expected.
This protection means genuine long-term security. You’re not borrowing with the risk of repossession if you can’t make payments (because there are no mandatory payments). You’re accessing your property wealth whilst keeping your home.
Portability Rights
Life changes, and you might need or want to move home at some point. Council standards require that equity release products include portability provisions wherever possible.
If you want to move to a different property, you can typically take your plan with you, subject to the new property meeting lending criteria. You’re not trapped in your current home just because you have released equity from it.
Whilst some restrictions may apply, this flexibility is vital for many people who worry about feeling stuck if they release equity.
What Council Membership Means for Advisors
When an advisor like me is a member of the Equity Release Council, it demonstrates specific commitments and capabilities:
- Qualifications and Training
Council member advisors must hold appropriate qualifications, specifically in later-life lending and Lifetime Mortgages. General mortgage qualifications aren’t sufficient. We must complete specialist training and ongoing professional development to maintain our knowledge. - Professional Indemnity Insurance
Member advisors carry professional indemnity insurance protecting clients if advice proves unsuitable or errors occur. This financial protection is mandatory, not optional. - Clear Information
We must provide clear, jargon-free information about how releasing equity from your home works, what it costs, how interest compounds, and what it means for inheritance. Transparency is a core requirement. - Suitability Assessment
We must thoroughly assess whether equity release suits your circumstances before recommending it. If it’s not right for you, we’re obligated to say so and explore alternatives. - Personalised Approach
Council standards require that advice be tailored to individual circumstances. At Jane Jackson Financial Solutions, our personalised approach ensures we create plans meeting your specific needs, providing simplicity, choice, and expertise throughout your journey.
The Application Process
Council membership also governs how the application process works. Members must follow verified procedures ensuring smooth completion whilst protecting customers.
Throughout the process, you’ll have multiple opportunities to ask questions, review information, and change your mind. The process includes mandatory legal advice from an independent solicitor who must confirm you understand what you’re agreeing to.
These procedural safeguards prevent rushed decisions and ensure you’re fully informed before proceeding. As your advisor, I guide you through each stage, resolving queries and keeping everything moving smoothly while ensuring you’re comfortable at every step.
Why Choose a Council Member?
Given that Council membership provides extensive customer protections, choosing member advisors and lenders is the sensible option.
- Safety and Security
The no negative equity guarantee, right to remain, and other protections provide fundamental security. You’re protected from worst-case scenarios that could occur with non-member products. - Professional Standards
You work with qualified, insured professionals who must follow established ethical standards and put your interests first. - Recourse and Complaints
If something goes wrong, Council members are subject to proper complaints procedures and regulatory oversight. You have options for recourse that don’t exist with unregulated providers. - Market Confidence
The fact that the vast majority of the market operates through Council members demonstrates industry commitment to these standards. Reputable firms choose membership because it’s the right thing to do. - Peace of Mind
Knowing that your advisor and lender follow rigorous standards provides confidence when making a significant financial decision. You can focus on whether releasing equity is right for you, rather than worrying about whether your advisor is trustworthy.
Checking Council Membership
Before working with any equity release advisor or accepting any product, verify Council membership. This is straightforward because the Equity Release Council maintains a public register of members on their website.
You can search for advisors by name or location, and verify that lenders are members. If someone claims membership but isn’t listed, that’s a significant red flag.
At Jane Jackson Financial Solutions, my membership is verified, and I’m proud to display the Council logo. You can check my profile on the Council website to confirm my credentials and commitment to their standards. In fact, you can find me by clicking here.
Making Your Decision
Understanding what it means to be a member of the Equity Release Council helps you make informed decisions about who to work with and which products to consider.
When you choose to work with Council members, you’re choosing robust customer protection, professional standards, and peace of mind. These protections make working with Council members fundamentally different from unregulated alternatives.
If you’d like to discuss Lifetime Mortgages with a qualified Council member advisor, I offer free initial consultations. We’ll explore whether releasing equity from your home suits your circumstances, discuss your options, and ensure you have all the information you need before making any decisions.
My membership of the Equity Release Council means you can trust that the advice you receive meets rigorous professional standards and that any products recommended include essential customer protections. Your security and peace of mind are paramount.
Frequently Asked Questions
Ready to Explore Your Options?
If you’d like to discuss your options in a friendly, no-obligation consultation, I’d be happy to help. I can visit you at home in Staffordshire, the surrounding counties, or arrange a video call if you’re further afield.
Call me on 07990 836455 or get in touch here to book your free consultation.
Important Information
A lifetime mortgage is not suitable for everyone, and it is important to seek financial advice before taking any action. All other options available should be explored before choosing equity release.
Interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home potentially to nothing. Please discuss with your family and beneficiaries.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Jane Jackson Financial Solutions is a trading name of Just Mortgages Direct Limited, an appointed representative of The Openwork Partnership – one of the UK’s largest Financial Advice networks with over 4,500 advisers nationwide.
