The answer depends on the three parties you choose to use while your plan is in progress. They are your financial adviser, your lender and finally your solicitor. To take out an equity release plan you must have financial advice, but the costs for this can vary dramatically as some brokers charge a fee based upon a percentage of the amount you borrow. The advice process involves researching the market, advising on and then processing your application.
So, we pass this saving onto you, our customer. The table below shows you how our advice fee compares with the two biggest brokers in the equity release market.
You would pay this when the loan is completed, and it can either be added to your loan amount or paid off separately. Note — if it is added to your loan, you will be paying interest on that as well. Wondering why there is such a big difference between the lower and higher charges? Some providers charge more but might also provide benefits others do not. Your adviser will take all these factors into account when looking for the best plan. Wondering where to find a decent solicitor who will do a good job for a reasonable fee?
We regularly work with some friendly legal firms who are familiar with Equity Release, and would be happy to recommend someone you can trust.
This is the fee your broker will charge for their services, and will either be a percentage usually around 1. Fees vary between brokers, so it is worth shopping around to compare quotes and the style of service they provide. Interest rates play an important part when considering an Equity Release deal. The interest rate will vary according to the amount you borrow, the type of plan you go for, and the prevailing market rates when you take out the loan. Interest is usually only paid when the loan comes to an end when you die or go into permanent care , but might be of greater concern if you take out a scheme where you can pay the interest back regularly.
Interest rates are currently between 3. A scheme with an attractive interest rate might come with additional costs or less favourable terms. Yes, charges for Equity Release schemes are not a one-way street, and customer needs have influenced many lenders to come up with flexible deals to win your business. Many schemes now offer a free valuation, reduced or waived application fees, and some might contribute to your legal and consultancy fees.
Ask your adviser about all these factors when you are discussing which Equity Release scheme will be the best for your needs. They will give you a personal illustration of the scheme and your options, which will break down all the costs and benefits. Feel free to call us, or drop us a line via the Contact page , for a chat about your needs.
We use cookies to offer you a better browsing experience and analyse site traffic. Read about how we use cookies by viewing our Cookies and Privacy Statement. Arrangement fees cover the set-up of your mortgage and will vary depending on your lender. These fees are payable once your lifetime mortgage is in place either as a one-off payment or by adding it to the sum you're borrowing — if you choose the latter you'll pay interest on it.
Your lender will usually arrange the valuation for you, often free of charge. Some lenders do charge but might also offer extra benefits, that balance out this cost. Releasing equity from your home using a lifetime mortgage is a big decision, and it's important to get the right advice at key points along the way. You must also have at least one meeting with this solicitor before you proceed. This is a valuable step in the process; designed to ensure you understand exactly what you are committing to, and that you are making your decision for the right reasons without any undue influence from your adviser.
If any additional legal services are required, these will be an additional cost. For example, issues with the freehold or changes to title deeds such as a CCJ County Court Judgement or a name change. Equity release interest rates can be fixed or variable with a cap. You only pay interest on the equity you have released, not he money held in reserve.
Compound interest is when you pay interest on top of the interest already accrued, in addition to the loan. Also known as rolled up interest, the interest is charged on either a monthly or annual basis, depending on the lifetime mortgage you choose. For example, if interest is added monthly, the interest accrued at the end of the first month is added to the loan. If you want to know more please call us on the number below and one of our Customer Service Agents will be happy to explain.
When you first purchase a home, a survey must take place in order to get a mortgage. The same process applies to equity release. This usually incurs surveyor fees. However, although we will arrange for an independent valuation to value your house, this is all part of our service and we don't charge a fee for this.
If you choose to release equity from your home , we want you to feel confident with your decision, that's why we're transparent with our fees. If you're interested in seeing how much you could release with equity release, why not take a look at our lifetime mortgage calculator. If you have any further questions about equity release, don't hesitate to contact us, or take a look at our pros and cons of equity release for more information.
We also have information on downsizing your home as an option. Having difficulty weighing the benefits of paying nothing or making repayments? Why not talk to us? Monday to Sunday am - pm We may record and monitor calls. We'll never share your details with third parties for their own marketing purposes. You can opt out of marketing at any time by emailing LGFAoptout landg.
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