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mis-sold equity release


Equity release is a way of accessing the value of your property without having to sell it or move out of it. It can provide you with a lump sum or a steady income, depending on the type of product you choose.


Equity release has been available in the UK for over 50 years, but it has gone through several changes in regulation and standards over time. Here is a brief overview of the history of equity release:

  • Pre-1992 period (1971 - 1991): This was the first phase of equity release, when there was no legislation regulating it. Some lenders offered schemes that were unfair and risky for the borrowers, such as shared appreciation mortgages, which gave the lender a large share of the property’s future value. Many people lost their homes or ended up owing more than their property was worth.

  • 1992 to 1997: This was the second phase of equity release, when some regulation was introduced after a landmark court case (Equitable Life Assurance Society v Hyman) that limited the power of the lenders over the borrowers’ pensions. The Financial Services Act 1986 also required lenders to be authorised and regulated by the Financial Services Authority (FSA). However, there were still no specific rules or standards for equity release products, and some lenders continued to offer schemes that were not transparent or fair.

  • 1998 to present: This is the current phase of equity release, when more regulation and standards were established to protect the consumers. The FSA issued a Mortgage Conduct of Business Sourcebook (MCOB) in 2004, which set out the rules and guidance for mortgage lending, including equity release. The Equity Release Council (ERC) was formed in 2012 as an industry body that sets standards and safeguards for equity release products and providers. The ERC’s members commit to following five product standards: fixed or capped interest rates, the right to remain in the property, the right to move to another property, the no negative equity guarantee, and the right to make penalty free payments. The ERC also provides information and advice to consumers and works with regulators and policymakers to promote responsible equity release.

If you think you, or you are the beneficiary of someone who has been mis-sold equity release contact Claimline Legal now for a free case review.

Call 0800 779 7457.





mis-sold equity release


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