The agency oversees the lenders, brokers, and financial advisers who deal with all financial products. It ensures that lenders register and that follow the stipulated codes of conduct.
#2. The Equity Release Council
As an equity release governing body, the council ensures its members adhere to the strict code of conduct that safeguards consumers.
Before taking out your equity release, ensure that the broker you choose in the Equity Release Council registers.
#3. The No Negative Equity Guarantee
The 'no negative guarantee' is in place to ensure you never owe more than the value of your property. Suppose your property drops value, and putting it up for sale isn't enough to repay your loan. In that case, your lender will write it off when you pass away or move into permanent care.
#4. You Have the Right to Occupy Your Property
With a lifetime mortgage, you can still live in your home. You don't have to sell any part of your property to unlock the capital you require – you borrow against its equity.
As per the ERC's rules, if it's a joint partnership, you're eligible to remain the sole proprietors until you both die or go into care homes.
The ERC serves you the right to carry your equity release plan with you, as long as you're moving to a 'suitable alternative estate.' A place that meets the lending standards of your plan provider.
Remember that you might need to repay part of what you owe if you move to a less expensive home, according to your lender.
#6. You Must Consult an Advisor
As per the ERC's regulations, you must get advice from a qualified professional before releasing equity.
#7. Your Estate May Keep an Inheritance
If there's any money left after, that can go to your beneficiaries (regarding your will). Your provider can also offer you a particular option to choose to ring-fence some value of your estate. Just let your adviser know so that they can get you a suitable equity release plan.
Equity Release Schemes Are Quite Flexible
As the equity release market continues growing, most providers give you plans with more fantastic choice varieties.