The Equity Release Council has introduced a new version of its Standards, effective from 6th May 2025, following a comprehensive 12-month review. The changes include the launch of a Consumer Charter and a sixth Product Standard, aimed at providing greater clarity and enhanced consumer protection across the equity release market.
The Standards refresh follows input from eight industry working groups and a full member consultation. The updates focus on improving accessibility and transparency while maintaining the Council’s commitment to delivering best practice across the sector. The Council’s Standards are designed to offer more robust consumer safeguards than any other form of property-based loan in the UK.
A key component of the update is the introduction of the Council’s first-ever Consumer Charter. The Charter outlines what consumers can expect when working with a Council member, including a tailored, transparent and thorough process to ensure suitable outcomes based on personal circumstances.
Michelle Highman, chair of the Equity Release Council Standards Committee, said: “Significant work went into refreshing the Standards with the aim to make them clearer, more accessible and more consumer focussed. Over a 12-month period, eight working groups went through the standards line by line before we consulted with our members and the wider industry to reach the final version. As part of this, we have developed a new product standard and unveiled our first Consumer Charter.
Customers look to the Equity Release Council to give them confidence to explore whether accessing housing wealth is right for them and the Consumer Charter clearly outlines what they can expect from our members. We expect them to be able to trust in a tailored, thorough and transparent process that ensures they received the right outcome based on their individual circumstances.”
The Council has also introduced a sixth Product Standard clarifying how early repayment charges are treated when a customer moves into care. Historically, ERCs were waived when a customer entered formal care settings. The new standard extends this waiver to customers who move in with family to receive care, provided a medical practitioner’s certificate is provided and the loan’s terms and conditions are met.
This change acknowledges the growing need for flexible financial solutions in later life. The number of people aged 85 and over in the UK is projected to increase by more than 60% by 2043, underlining the importance of long-term planning and support for care-related circumstances.
The Council’s full set of Product Standards now includes protections such as fixed or capped interest rates, the right to remain in one’s home for life or until care is required, the option to move home subject to lender approval, a no negative equity guarantee, the ability to make penalty-free repayments, and now, clarification on ERC waivers for informal care arrangements.
Highman added: “The Council and our members continually strive to grow our market and ensure that later life lending works for the greatest number of consumers possible. While equity release may not be right for everyone, for many it can be an essential lifeline to achieve the retirement they want and today’s launch means they can continue to do this with confidence.”
