The Equity Release Council has appointed a new standards committee to develop its consumer safeguards.
The 11-strong committee will be in place for two years and is made up of experts from across the representative trade body’s membership.
Following a major organisation-wide governance review, the standards committee replaces the former standards board and reflects the organisation’s ability to bring together all disciplines involved in delivering positive customer experiences, including providers, advisers, solicitors, surveyors and tech platforms.
Equity release allows homeowners aged over 55 to access money from their homes, without having to make repayments until they pass away or go into care, unless they choose to. Products that meet Council standards ensure: secure tenure for life; fixed or capped rates for life at the point of release; the right to move home; a ‘no negative equity’ guarantee; and the ability to make voluntary penalty-free repayments, which can reduce interest costs.
The Council, the representative body for the UK equity release sector, is now seeking to appoint an independent chair to oversee the new committee as well as a new member panel, which will inform the organisation’s business planning and strategic direction.
Jim Boyd, CEO of the Equity Release Council, said: “The importance of our safeguards has remained a constant for over 30 years. This commitment to industry improvement has transformed the profile and reputation of equity release with consumers, government and regulators alike. Council standards are stronger than ever following the launch of our fifth product standard last year, giving all new customers the option to pay down their loan via voluntary penalty-free partial repayments.
“Modern equity release is a trusted and socially important product that enables older people to meet daily living expenses, make aspirational purchases or support their loved ones. It should be on all homeowners’ financial checklists as they approach later life.”
