The Equity Release Council standards, in plain English

The Equity Release Council is the industry body that sets the consumer protection standards for lifetime mortgages and home reversion plans in the UK. A plan that meets these standards carries a set of guarantees that older, unregulated products did not. Here is each one, in a single plain sentence.

No negative equity guarantee

You can never owe more than your home is worth when it is sold, so your estate cannot be left with a debt to repay.

The right to remain in your home for life

You keep the right to live in your home for the rest of your life, or until you move into long term care, and the lender cannot ask you to leave.

The right to move and port the plan

You can move to a suitable alternative property and take the plan with you, subject to the lender's criteria for the new home.

The ability to make voluntary payments

Council approved plans let you make penalty free voluntary payments to reduce the interest that rolls up, so you can keep the debt under control if you wish.

Independent legal advice is required

You must receive independent legal advice from your own solicitor, who confirms in a face to face meeting that you understand the plan and are acting freely.

Fixed or capped interest rates

The interest rate must be fixed for the life of the plan, or if it is variable, it must have a fixed upper limit so you always know the most it can rise to.

You can check each protection against a specific plan with the ERC standards checker, and read more on the headline guarantee in the no negative equity guarantee explained.