What the updated 2025 Standards mean for you
The Equity Release Council has launched Standards 2.0, a significant update aimed at strengthening consumer protections while simplifying the equity release process. These changes, including the introduction of a sixth product standard and a new Consumer Charter, mark an important moment for both customers and the professionals who support them.
As proud members of the Equity Release Council, we welcome these changes and the clarity they bring to homeowners over 55 years old, looking to access wealth tied up in their property. However, with any new update, the changes can often be complex and confusing for many. So what, specifically, does the new Standard mean for you?
One of the most impactful changes is the addition of a sixth product standard. Starting on 6th May 2025, lenders who follow Council rules will waive early repayment charges if a borrower moves permanently into long-term care. Critically, this now includes both care home placements and informal arrangements with relatives, as long as a medical practitioner’s certificate is provided, which was previously not accounted for.
This change provides peace of mind, helping families to avoid unnecessary charges at what is often a difficult time, both emotionally and financially.
Alongside the new standards, the Council has introduced a clearly written Consumer Charter, designed to be shared with customers. The Charter sets out four key promises from all member firms:
Trusted insight from regulated and qualified professionals
Tailored advice specific to each customer’s individual circumstances
Thorough support throughout the decision-making process
Transparent communication that avoids pressure or confusion
The Charter is part of a wider push to make equity release not only safer, but also simpler and more accessible for consumers.
The introduction of Standards 2.0 comes at a time of rapid growth in the sector. As highlighted by Wilkin Chapman Rollits in a recent Sky News article, equity release is increasingly being used by those homeowners over 55 to manage inheritance tax or provide financial support to family members.
With the market expanding, the need for robust, clear protections has never been more important. So, how does this update translate into action?
If you’re considering equity release or have an existing plan in place, we recommend that you:
Confirm your lender’s compliance with the updated standards, as not all products may be covered yet.
Ask your adviser whether early repayment charges would apply in the event of long-term care.
Read the Consumer Charter and use it to guide and shape your questions.
Choose an adviser or law firm that is a member of the Equity Release Council to ensure independent, compliant advice, like Wilkin Chapman Rollits.
The Equity Release Council’s Standards 2.0 offer stronger protections for homeowners by requiring clearer communication, better product safeguards, and more tailored advice than the original iteration, helping ensure that your home equity is accessed more fairly and safely than ever before.
While these nuanced and compassionate reforms are a welcome evolution, making the equity release process more transparent and supportive, it’s important to clarify that rules alone don’t replace the need for expert guidance. After all, misreading or misconstruing a law doesn’t mean that you’re not liable for its consequences. Thorough guidance by expert counsel is indispensable when it comes to safeguarding your livelihood and your assets, which is where we come in.
At Wilkin Chapman Rollits, we ensure that you will not only understand the protections available to you, but also have a firm grasp of how to apply them in a way that works for your individual goals and circumstances.
If you’d like to discuss how these changes may affect your equity release plans, our private client team is here to help.
Contact Caroline to discuss this further.
