Who are the Equity Release Council (ERC)?

How Can the Equity Release Council Members Help You?

The Equity Release Council is a Self-Regulated Non-Profit Organisation That Safeguards the Interests of Homeowners. They Represent over 180 companies.

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What is Equity Release Council

In case you’re wondering,

Equity Release Council is a non-profit organization that helps people with equity release products. Equity release products can be a great way for homeowners to access the money they need without selling their house or moving out of it. But how does Equity Release Council work? What do they do? And why should you care about them? In this article, we will answer all these questions and more!

what is equity release council

What Is Equity Release Council?

The Equity Release Council is a non-profit membership organization that helps people make informed decisions about equity release products. They are dedicated to educating the public on how these products work and what they can do for homeowners who need extra money.

Since they are a non-profit group, members can access their services for free and take advantage of the knowledge shared by experts in this field. Equity Release Council is not trying to make any profit from its members. Instead, it relies on donations and voluntary contributions to provide education about equity release products.

They are available to assist homeowners and their families free of charge.

Let’s have a look:

They provide:

  • Expert legal advice.
  • Education materials.
  • Advocacy on behalf of seniors.
  • Information about Canada’s most popular equity release products.

Equity Release Council is inclusive, which means that it welcomes all members regardless of age, gender or disability status.

what does equity release council do

What Does Equity Release Council Do?

First and foremost, the Equity Release Council educates people about equity release products. This is done through educational seminars and presentations in addition to providing accurate information on their website.

To determine if a homeowner qualifies for an equity release product, they need to answer some basic questions, which can be found here: What are your needs? How would you like access to this money? Once these questions have been answered, it will give them options of what kind of equity release product might work best with their circumstances.

The second thing that Equity Release Council does is provide unbiased advice and recommendations when helping homeowners find the right mortgage broker or equity release lender who provides either home improvement loans or reverse mortgages. They also offer free consultation services where members can ask questions or get advice on a mortgage product.

Lastly, the Equity Release Council is an active member of the National Reverse Mortgage Lenders Association (NRMLA), promoting and supporting reverse mortgages through conferences, seminars, media relations, and education for policymakers.

membership at equity release council

Membership at Equity Release Council

The Membership at Equity Release Council is free and offers many benefits. Members receive the latest news in reverse mortgages monthly, a newsletter with valuable information on reverse mortgage products and tips for homeowners over 50, plus member discounts from various lenders, including NRMLA members.

On the other hand,

The membership also provides access to a network of qualified counselors who can answer questions about either home improvement loans or easements and advise people who are considering getting their retirement income through an equity release product.

Membership at Equity Release Council includes:

  • A quarterly newsletter with valuable information on reverse mortgage products and tips for homeowners over 50
  • Member discounts from various lenders, including NRMLA members
  • Access to a network of qualified counsellors that can answer questions about either home improvement loans or easements, as well as advise people who are considering getting their retirement income through an equity release product.
  • Access to a network of qualified counsellors that can answer questions about either home improvement loans or easements, as well as advise people who are considering getting their retirement income through an equity release product.
what are some benefits of joining the equity release council

What Are Some Benefits of Joining the Equity Release Council?

Joining the group will provide you with opportunities to educate yourself about products that may help you have more control over your finances while still maintaining ownership of your home with no risk.

The Equity Release Council is a non-profit organization that hosts seminars, workshops and events to educate people. They also provide information on different products for homeowners in need of extra money.

One way the council does this is by hosting informational sessions about these topics and maintaining an online community where members can come together for peer support or information sharing around financial issues like paying bills or managing credit cards.

Simply put:

Members will also have access to educational materials (newsletters) from the group’s website. The primary benefit of joining the Equity Release Council would be increased education on products that may work best for your specific situation but with no risk of losing your home because it remains yours throughout all transactions.

The Equity Release Council also provides a resource to members in the form of a peer support group. For example, suppose you are unsure about any topic or would like someone facing the same situation as you to advise on how they managed their finances and what worked for them.

In that case, this type of social network can be beneficial. The council also hosts informational sessions where experts present information pertaining directly to financial planning, retirement savings options, and much more.

equity release defined

Equity Release Defined

Equity release is a way for homeowners to unlock the equity in their homes and use it as cash.

This can happen by accessing deferred annuities or lifetime mortgages, which are special types of equity loans that give you access to your money over time. The Equity Release Council helps people understand these products so they can find the right one for them.

There are two types of equity release products: deferred annuities and lifetime mortgages.

A deferring annuity is a contract that pays you an income on the condition that when you die, your property will be sold to pay for this income.

This product can provide constant monthly payments or cash lump sums at certain intervals, such as every five years.

The lifetime mortgage is similar to a home loan where homeowners borrow money against their property to receive either regular cash flow payment throughout the term or one large sum after 25-30 years (in which case they would need to repay it). The key difference between these two types of loans is that there may be penalties with deferred annuities if you sell the house before the end date of the equity release contract.

The equity release schemes available in the UK fall into two categories: lifetime mortgages and secured annuities with income drawdown.

A lifetime mortgage is when you borrow against your property, which will be sold after death to pay for the loan’s interest and accumulated debt; it pays a monthly income until then.

Secured Annuity with Income Drawdown is where someone lives in their home or buys another one before they retire, but puts down an initial lump sum as collateral so if they want to move house later on during retirement, there would be no penalty fee (but if not used within five years of the annuity purchase, the lump sum would be lost).

When someone takes out a lifetime mortgage, they will have to pay inheritance tax on any money owed from their property.

equity release council policies

Equity Release Council Policies

The policies of the Equity Release Council are designed to protect both the individual and their lenders, with a focus on transparency.

The policies of Equity Release Council include financial adviser firms, information about equity release plans and mortgages – including how one can be released from its obligations – as well as details of different types of mortgage insurance available for those considering this type of product.

You see:

An Equity Release Council policy is not a mortgage and does not come with the same risks, such as being required to repay the loan over time. However, the benefits of this product can be significant. Some individuals may have already used it for specific reasons, including accessing equity from their homes.

The council was established to provide an industry-wide voice on behalf of those who sell or release equity from their homes when they need money without giving up occupancy rights. It has helped set down best practice rules and offers expert financial advice, which helps improve standards across the board.

the equity release council protect you from

The Equity Release Council Protect You From

The Equity Release Council is the only industry-wide body that has a whole range of safeguards in place to protect you from the risks. One thing we make sure of is that no one will ever come knocking on your door demanding repayment, regardless of whether this takes place after their death or when they sell the property with an equity release mortgage.

As well as providing consumer protection against these types of risks, other benefits include:

  • You don’t have to pay for life cover, which can be expensive and often unnecessary whilst living at home (if another person such as a spouse provides it)
  • When housing prices rise over time, so do any funds released under your equity release plan – provided there’s enough house left.
  • You can release equity at any time, as long as you have enough to repay the loan in full.
who should use equity release counselling services

Who Should Use Equity Release Counselling Services?

The Equity Release Council can help you decide whether equity release is the right option for your circumstances. They will also take long-term care of all the paperwork and make sure everything goes smoothly so that it’s simple to understand what you’ve agreed to and when.

Let me explain,

Suppose you are unwell or unable to work due to a physical disability or illness but want some form of income in retirement. In that case, an additional source such as annuity may not be viable because once it starts paying out, there would have been no need for its purchase at all!

Equity release could provide much-needed access to cash on top; this means peace of mind and security in retirement without worrying about how long we might live.

Suppose our health prevents us from working or traveling abroad for an extended period. In that case, we may have to decide whether to live in one country with lower living costs and no state benefits – but where our families are still based.

Equity release can help by allowing us the flexibility of staying put if that’s what makes sense at any given point; this means not having to uproot oneself every time there is concern over health or other reasons.

Equity release could also be used as a safety net should something happen which prevents you from ever retiring in the first place: say disability or illness renders work impossible? The equity released would provide some form of income alongside state benefits so that they cover all expenses.

Best of all,

Equity release also has the advantage of being a single and one solution because it does not involve any reasonable upfront costs.

It’s just like topping up your pension. That monthly payment will be able to cover anything you might need from day to day – bills or groceries, for example.

how has the equity release council helped consumers

How Has the Equity Release Council Helped Consumers?

The council will provide information and advice for those interested in using equity release products.

They also offer impartial advice on equity and what may be suitable, based on their health or financial situation – such as their age, property type, etc.

This ensures that borrowers are not left with debt due to an unsuitable product choice. However, it is important to note that they have no control over lenders’ decisions about the individual application process: these companies make up their own terms of business which might differ from each other and certainly from the councils’.

The council does not intervene or mediate when there are disagreements between a lender and borrower. Still, it aims to provide information for those looking at the product standards.

It gets better,

The council is there to ensure that people are equipped with all the necessary information before deciding on what equity release products will work best for them, whether an annuity or drawdown lifetime mortgages. In addition, they help guide borrowers through choosing how much money they want from their property to live out their retirement years comfortably by considering factors such as health, income, and assets.

Once a person has made up their mind about what loan type might work best for them, then Equity Release Council can put potential candidates in touch with lenders who offer that particular product.

what does being part of the equity release council mean

What Does Being Part of the Equity Release Council Mean?

The Equity Release Council is a group that helps people who are considering getting equity release products. This includes home reversion plans and drawdown lifetime mortgages – or Hire purchase as it’s sometimes known with these types of financial products.

And the bottom line?

The council also talks about equity release products as part of retirement planning because they can offer people an opportunity to access their home or property while still being able to leave something behind when they pass away. This isn’t just about money either: Equity Release Council wants customers to have peace of mind knowing that if anything should happen, there are consumer safeguards in place with the types of equity.

Common Questions

In Conclusion

To sum it up,

The Equity Release Council is a group of professionals who are experts in the equity release industry. They work to provide consumers with information about equity release and how it can help them achieve their financial goals, such as retirement or paying for care if they become disabled. With this council’s guidance, you will be able to make an informed decision without any pressure from the salesperson.

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Before You Go!

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Value of Your Home?


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