How much does Equity Release cost?
Under the terms of your Lifetime Mortgage, the rate of interest that will be charged on your loan will either be fixed, or it will be variable, in which case there will be a “cap” (upper limit) on the amount that can be charged at any time. If the rate is fixed, it will be fixed each time you withdraw funds from your plan. Over time, therefore, you could have several amounts of money which you have been released at different times, and each would be subject to a different fixed rate of interest, which would then be added to the total amount which you have borrowed. You will not have to pay back any of this money until your plan comes to an end and your property is sold or you choose to repay the loan, but upon commencing the loan you can opt to repay the monthly interest so the loan itself will remain the same balance. At any point you can change this to roll-up interest where it is added to the loan however once this change occurs, the plan can not be changed back again.
There may be a lender charge for taking out the plan, this varies from £0 to £1500+ but the interest rates will often reflect this initial fee so is worth working out longer term which you would be better off with.
Solicitors fees, this will depend upon how much your plan is worth, if any change in equity, if you choose to add Lasting Power of Attorney etc. So will depend case by case but as a rough guide, a straight forward case for £50,000 should be around £750.
The interest rates regularly change with a whole host of different options based upon your area in the country, size of the plan, your health, your age, maximum sum or drawdown option for the future, which lender etc. so really does depend case-by-case.
We charge a competitive broker fee of £995, regardless of how big your plan is or how many visits it takes for you to feel comfortable and fully understand. Other companies may charge a set percentage of your plan or only allow you a set number of visits - or none at all.
To discuss your circumstances further, in your own home at a time which suits - call to book your free appointment.