We understand that equity release is a big decision, which is why it’s important for customers to understand the safeguards that accompany equity release and the guarantees that come along with using Bower Home Finance. When it comes to Equity Release there are two key bodies that help ensure your needs are met and you are treated fairly as a consumer, The Financial Conduct Authority and The Equity Release Council.
Who are the Equity Release Council?
The Equity Release Council is the industry body for the UK equity release sector, representing the providers, qualified financial advisers, solicitors, and intermediaries. Membership represents the interests of 90% of the Equity Release sector. All members have agreed to abide by the Council rules and have signed up to the Statement of Principles.
The Equity Release Council Statement of Principles:
The Equity Release Council Standards Board makes sure that all lenders and advisers adhere to a strict code of conduct that includes several safeguards for customers. All Equity Release Council members must abide by a set of principles to ensure the highest standards of conduct when giving equity release advice.
These principles demand that:
- Members will exercise due skill, care and diligence in all that they do and uphold the standards set out by their professional bodies at all times
- Members must act with the best interests of their clients being paramount, treating customers fairly in all their actions.
- Members must comply with the Financial Conduct Authority’s (FCA’s) rules governing the sale of equity release products, including the requirement that all customers who buy equity release plans are fully advised by a qualified adviser.
What safeguards do the Equity Release Council offer?
The Equity Release Council Standards Board makes sure that all lenders and approved advisers adhere to a strict code of conduct that includes a number of safeguards for customers.
Bower Home Finance is a member of the Equity Release Council and only recommends Equity Release Council plans.
These guarantees are in your best interests and include the following promises:
- No Negative Equity Guarantee — this means you or your family will never owe more than the value of your home
- You retain the right to remain in your home for life providing it remains your main residence
- For lifetime mortgages, interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit) which is fixed for the life of the loan
- You can move to another suitable property (subject to the new property meeting the lender’s acceptable property criteria)
- It is your right to seek independent legal advice from an equity release solicitor of your choice
Learn more about the Equity Release Council on their website.
What it means to be an Equity Release Council Member
The Equity Release Council sets certain standards and insists on a code of conduct for both providers and approved advisers to abide by to ensure members act with integrity and transparency. The lenders also must provide certain safeguards to give you peace of mind including a ‘No Negative Equity Guarantee’.
As members of the Council, we abide by the safeguards and code of conduct they have in place for advisers, which means we conform to the best practices within the sector.
Our Equity Release Council Experience
As well as being one of the first approved advisory companies to join the Equity Release Council as a member, Bower Home Finance has also further strengthened their commitment to their principles and safeguards.
Geoff Charles, our Chief Executive, has been appointed to the Equity Release Council Standards Board. Geoff will represent the larger advisor companies within the industry, drawing upon over 18 years of experience with Bower in prioritizing consumer safety and ethical advice. Geoff is passionate about maintaining high standards for customer outcomes, protecting vulnerable customers, and providing high quality service and advice.
Andrea Rozario, our Chief Corporate Officer, was the first Director of the Equity Release Council. Before joining Bower, Andrea was Director General of the Equity Release Council for over five years. Andrea’s appointment in 2014 strengthens Bower’s commitment to the principles and safeguards of the Council. Andrea continues to be a consumer champion and a voice in our industry, regularly publishing articles in the media.
Equity Release Advisers trained to the highest standards
At Bower Home Finance, we require each of our approved competent equity release advisers to be fully qualified and have a proven track record in equity release. As standard, each of our equity release advisers are qualified with a Certificate of Regulated Equity Release (CeRER) and Certificate in Mortgage Advice and Practice (CeMAP), in addition to being registered with the Equity Release Council.
Whole of market advice
Not only do our equity release specialists hold CeMAP and CeRER qualifications as standard, but they are also highly trained and monitored to provide whole of market advice, so you can find the best equity release plan for your circumstances.
Offering whole of market advice requires advisers to provide unbiased and unrestricted advice on all equity release products and maintain professional development. This means they will not recommend lenders or products that do not suit your circumstances. Giving you peace of mind that they have your best interest at heart.
Is Equity Release Regulated by the Financial Conduct Authority (FCA)?
Yes, Equity Release products are regulated by The Financial Conduct Authority (FCA). The Financial Conduct Authority (FCA) regulates the financial markets in the United Kingdom, ensuring consumers are supported and firms meet their standards and rules. Bower Home Finance is regulated by the FCA, and the FCA’s Consumer Duty sets high standards of consumer protection in financial services. meaning you can expect clear communication from our team, with products and services that offer fair value.
