The ERC was responding to a letter sent by the Financial Conduct Authority to later life mortgage providers. In it the regulator said it was concerned the rising cost of living meant vulnerable older borrowers were more at risk of buying unsuitable equity release or lifetime mortgage products.
David Burrowes, chairman of the Equity Release Council said equity release had helped make a substantial difference to the quality of life of the majority of borrowers. He added that it was not the right choice for everyone.
Burrowes said: “The rising cost of living makes it more important than ever to make sure that any decision to release equity is based on a thorough understanding of each customer’s needs and a clear understanding of all options and alternatives available to them.
He pointed out the ERC had published updated standards in March of this year and was continuing to work with members, industry and the regulator to “maintain and build on the strong protections established over the last 30 years, which are unique in safeguarding customers from risks such as rising interest rates, negative equity and repossession.”
