"The evolution of our standards is key to helping the market continue to grow and ensure that the diverse customers who choose to access their housing equity can do so with confidence."
- Michelle Highman, chair of the Council's Standards Committee
The Equity Release Council has announced updates to its standards as well as a wider review of these consumer safeguards.
All Council members are currently required to adhere to a set of standards and principles which safeguard customers by ensuring they are fully informed, and products and services meet best practice. Following consultation with stakeholders and members, the Council has made some initial updates to the standards with a wider refresh planned for later in 2024.
The first tranche of updates will come into effect from 1st March 2024 and include two notable changes which underpin increased product flexibility and consumer choice in later life. Firstly, new standards for mandatory payment lifetime mortgages have been developed to offer customers enhanced protections and additional peace of mind.
In addition, the standards now include the requirement for advisers to cover income and expenditure as part of the advice process. This important metric is already included in many adviser discussions alongside topics such as alternatives to equity release but to ensure that it is consistently delivered, Council standards now mandate this.
Michelle Highman, chair of the Equity Release Council's Standards Committee, said: “The Council’s standards have been vital to the development of a vibrant market, but it is important that we regularly review them and consider how we best serve customers as well as support innovation within this sector.
“The Council is therefore undertaking a thorough review in 2024 with input from members, stakeholders, and other interested parties. The evolution of our standards is key to helping the market continue to grow and ensure that the diverse customers who choose to access their housing equity can do so with confidence.”
Kelly Melville-Kelly, director of risk, policy and compliance at the Council, added: “As a market, we have seen significant innovation and change over the last few years, and it is vitally important that we ensure our standards continue to evolve.
“The updates that we have announced today are just a start and we will shortly be launching a wider review and seeking input from members as well as wider industry stakeholders. This will be a wide-ranging refresh which will look at not only the standards themselves but how they are communicated to customers to ensure that they provide the best protection possible.”
