What fees are payable for Equity Release?
Save money by paying fixed advice fees, not a percentage of the amount released.
There are several fees involved in the process of releasing equity from your home. Which most people will be aware of and accept as part of the process. These will include:
Valuation Fees – we can source products that do not include valuation fees, saving you money.
Arrangement Fees – some lenders will charge set up or arrangement fees upon completion. We can source plans that do not include any setup or arrangement fees.
Solicitor Fees – you are required to get independent legal advice during the process and can use your own solicitor if you wish. We have a panel of solicitors who offer reduced rates for our clients. These fees will be around £700 which includes a home visit if you prefer.
These fees can be added to the loan or deducted from the loan. Any fees you incur are only payable on completion and if you decide not to proceed at any time will not incur any fees or charges.
Most Equity Release advisers will charge advice fees during the process. Many advisers charge a fee based on a percentage of the loan amount, which will be around 1.5 or 2% of the loan amount. On larger loans this can be quite expensive. On a loan of £100,000 these fees would be between £1,500 and £2,000, with many companies charging a minimum fee of £1,499. At Your Time Equity Release our fixed fee is £695 and not dependent on the size of the loan.
Case Study – Mr & Mrs Rogers from Kent
Requirement – Equity release of £135,000 from their home valued at £450,000
Solution – Lifetime Mortgage with a fixed interest rate for life of 4.9%
Charges Comparison
Charges from Your Time Equity Release:
Advice fee – £695
Valuation fee – £0
Arrangement fee – £0
Solicitor fee – £700
TOTAL FEES – £1,395.00
Charges from a % fee charging adviser:
Advice fee (1.95%) – £2,827
Valuation fee – £0
Arrangement fee – £0
Solicitor fee – £700
TOTAL FEES – £3,527
By using Your Time Equity Release they could save £2,132. If this was added to the loan, after 15 years this could increase to £4,009 (with compounded interest). Using Your Time Equity Release will not only save you money immediately, but over the longer term as well.
Case Study – Mr & Mrs Davies from Shropshire
Requirement – Equity release of £40,000 from their home valued at £150,000
Solution – Lifetime Mortgage with a fixed interest rate for life of 4.2%
Charges Comparison
Charges from Your Time Equity Release:
Advice fee – £695
Valuation fee – £0
Arrangement fee – £0
Solicitor fee – £700
TOTAL FEES – £1,395
Charges from a % fee charging adviser:
Advice fee – £1,499 – increased to the minimum fee.
Valuation fee – £0
Arrangement fee – £0
Solicitor fee – £700
TOTAL FEES – £2,199
By using Your Time Equity Release they could save £804. If this was added to the loan, after 15 years this could increase to £1,312 (with compounded interest). Using Your Time Equity Release will not only save you money immediately, but over the longer term as well.
