Equity Release Council (ERC), a non-profit organisation, has announced recent updates to their list of product standards and a broader review of consumer protections.
Here, it is explained what equity release could mean to you and whether there are any important issues to take into consideration.
What changes are there with equity release?
The ERC announced some initial updates on 15 February 2024. A more comprehensive update is planned for the end of 2024.
Two changes were made to the first round of updates, which took place on 1 March 2024. These two changes increased product flexibility and choice for consumers in later life.
First, there are new standards for mortgages with mandatory payments to provide customers with enhanced protection and peace of mind.
The most common type of equity release is a lifelong mortgage. A loan is taken out against your property and repaid with the proceeds of its sale.
The standards also include the requirement that advisers cover income and expenses as part of their advice process. The discussion of equity release is now in line with similar products. For Equity Release Solicitors Near Me, consider Tivoli Legal.
Considerations for equity release
It is best to start with a company who is a member of the Equity Release Council. Before choosing a provider, you should also consider other important factors.
If you are concerned about your retirement income or care costs, taking out an equity release could be a good option. Consult with Equity Release Solicitors Near Me. You could use the money to make home improvements or help out family members. Equity release does not require repayments. However, some products do.