How much do equity release advisors charge?

Are you concerned with how much your equity release advisor is charging you for their advice? Don't get ripped off - understand what you should expect to pay, and know that we charge £655 less than the market average!

Equity release advice fees typically cost £1,495 for whole of market advice. Some advisors may charge no fee, while others charge several thousand pounds. Whether the advisor provides whole of market or tied advice will usually impact their fee. Fees are typically paid on completion, but some will charge upfront.

With many equity release advice firms in the UK, it is important to know how much they may charge you, and the service they offer. Not all firms have access to the same lenders and products, so the cheapest may not always be the best!

What are typical equity release advice fees?

Equity release advice costs range from nothing to several thousand pounds. But what are the typical advice fees you can expect to be charged?

Let's look at what some of the top equity release advice firms charge for their advice and whether it is whole of market or tied advice.

Advice firm	Advice fee	Notes
Money Release	£840	Whole of market, fee paid on completion
Age Partnership	£1,895	Restricted panel, fee paid on completion
Key Advice	£899	Tied advice to Key branded products
The Equity Release Experts	1.99% of the amount released; minimum fee of £1,799	Whole of market, fee paid on completion
Equity Release Supermarket	£1,495	Whole of market, fee paid on completion
Bower	£1,495	Whole of market, fee paid on completion

Data correct as at July 2023.

The main reason advisors charge different amounts will be based on the type of advice they provide.

• Whole of market - offers unrestricted access to lenders and products from across the equity release market.
• Restricted panel - offer products from a smaller panel of lenders.
• Tied advice - offer restricted access to products from one lender.

Although it may cost you a few hundred pounds more for whole of market advice, it could save you thousands over the life of the plan. Not only that, the product that a whole of market advice firm can recommend could be more suitable for your financial needs and goals.

Some advice firms, like us at Money Release, charge a fixed fee that will not be increased for any reason.

Others charge a fee that will vary. Typically, they will calculate this as a percentage of the funds you release; most will not exceed 2%. For example, on a £100,000 release, the advice fee would be £2,000 if charged at 2%.

How a lower equity release advice fee could save you thousands

When paying for your equity release advice fees, you may opt to borrow more to cover advice fee rather than paying from your savings.

For example, you wish to borrow £100,000 and choose to add the setup costs to the loan.

If your financial advice fee is the market average of £1,495, you would need to borrow £101,495 to cover this cost.

However, with our fixed fee of £840, you would require £100,840.

As interest is charged on the total loan, the difference in total cost over time can really stack up.

Let's look at how interest charged at 5% against these loans will increase over time:

Years	£101,495	£100,840	Saving
1	£106,570	£105,882	£688
2	£111,898	£111,176	£722
3	£117,493	£116,735	£758
4	£123,368	£122,572	£796
5	£129,536	£128,700	£836
6	£136,013	£135,135	£878
7	£142,814	£141,892	£922
8	£149,954	£148,987	£968
9	£157,452	£156,436	£1,016
10	£165,325	£164,258	£1,067
11	£173,591	£172,471	£1,120
12	£182,270	£181,094	£1,176
13	£191,384	£190,149	£1,235
14	£200,953	£199,656	£1,297
15	£211,001	£209,639	£1,362

Moreover, you may achieve a lower interest rate on a smaller loan!

When do I have to pay for my equity release advice?

Here at Money Release, we operate on a No-Completion, No Fee basis, meaning you will only pay your advice fees on completion. If you decide you do not wish to proceed with the equity release application or the lender rejects it, we will not charge you a fee.

However, some firms will charge for their advice at different points.

It could be for:

• Their initial advice meeting,
• When you apply for equity release,
• When the lender produces an offer.

The most common is when the lender produces an offer.

However, at this time, you are still required to have legal advice. During the legal stages, you could encounter problems that delay your application or end it altogether.

This is why we believe it is essential only to charge you our fee when you have received your funds.

Do I have to pay an application/booking fee for equity release advice?

Some advisors will charge you an application fee. However, at Money Release, we will not charge you an application/booking fee.

How much does Key Advice charge for equity release advice?

Key Advice is one of the UK's two largest equity release advice firms. So it would be of little surprise if you are considering using their equity release service.

Key Advice charge a fixed fee of £899 for their equity release advice.

However, Key Advice offer "tied", restricted advice to Key branded products. If your advisor cannot recommend a suitable product, you will be assigned a new advisor who can advise with an unrestricted range of products - whole of market.

You will be charged an increased fee of £1,799 for their whole of market advice.

The fees are only paid on completion, offering their clients good protection.

How much does Age Partnership charge for equity release advice?

Along with Key Advice, Age Partnership is the other largest equity release advice firm in the UK.

Age Partnership charge a fixed fee of £1,895 for their equity release advice.

Again, like most firms, they only charge their fee on completion, not before.

However, Age Partnership recommend equity release plans from a restricted panel of lenders. This means that it may be possible to access a more cost-effective plan from a whole of market advisory firm.

Can I get equity release advice for free?

Some firms offer fee-free advice. Free advice sounds great, right? And it can be. However, there is one major downside.

Many of these firms will have restricted access to lenders and products.

Having restricted access is also known as tied advice, and the recommended product may not be the most suitable or cheapest plan available to you on the market.

Let's look at an example of how whole of market advice could save you money.

Do I need an advisor for equity release?

The Financial Conduct Authority (FCA) is the regulatory body covering all financial advice throughout the UK. It is an FCA requirement that you receive financial advice from a suitably qualified advisor when taking equity release.

The main reason is to protect you. With hundreds of equity release products available on the market, it is up to the advisor to find you the most cost-effective plan. The cost difference between the right and wrong plan can be tens or hundreds of thousands of pounds over several years.

Furthermore, an equity release might not be suitable for you.

We will never recommend equity release if there is a better alternative for you.

This is why it is essential for the advisor to complete a full Fact Find to discuss your financial position, goals and needs.

What are the other equity release costs to be aware of?

During the equity release process, there are other set-up costs involved.

These may include:

• Solicitor costs
• Lenders fees

I typically advise my clients to allow around £2,000 for all fees involved, including our financial advice fee of £840.

Let's take a look at these two other costs involved.

How much do solicitors charge for equity release?

The cost of your equity release solicitor will vary on your chosen firm.

We work closely with one of the UK's leading equity release specialist firms, Barton Law. They charge a fixed fee of £840, which is again only paid on completion, never before.

Remember, your solicitor works for you. No advisor, lender, or other party can force you to use any particular solicitor. It is your free choice which solicitor you use.

Similar to financial advice, it is an FCA requirement to receive independent legal advice from a solicitor.

You can find out exactly what your equity release solicitor will do for you and why they are needed in our guide here.

How much do lenders charge for equity release?

Like with all equity release costs, the lender's fees vary, from lender to lender, and product to product.

The main costs that could be involved are:

• Valuation fee
• Product fee
• Interest charges

Let's look at these in more detail.

Valuation Fees

Almost all products now offer a free valuation. Some lenders charge upfront valuation fees if your property is worth over £1,000,000; however, there will likely always be an option to have a free valuation.

The amount charged will be dependent on your property price. Typically the higher the property value, the higher the fee.

Product Fees

Currently, around 50% of the products on the market have no product fees. The other 50% mostly charge their fees on completion.

You can decide if you wish to have the fee deducted from the loan or added to it. If you add the fee, the lender will charge you interest on the amount you release, plus the fee.

Rarely the lender charges an upfront fee when you apply, and is limited to very few products.

Interest Charges

Equity release provides you with a tax-free cash lump sum. You will have an interest rate associated with your equity release and will be charged for as long as the plan runs.

The cost of interest will vary. It is dependent on several factors, including:

• The amount of funds you release
• The length of time the plan runs for
• Your recommended product

The interest rate you achieve will be based on many factors, including:

• The amount you release compared to your property value (Loan to value). Typically the higher the percentage loan to value, the higher the interest rate.
• The recommended product with desired plan features
• Your property type, construction and condition
• Any medical conditions you may have. Medically enhanced plans could lower your interest rate or increase the borrowing available to you.

Currently, all lifetime mortgages offer fixed for-life interest rates, meaning they cannot change in the future.

One lender previosuly offered a variable interest rate plan that was collared and capped, meaning there is an upper and a lower limit to the interest rate.

Your equity release advisor will be able to guide you through achieving the best interest rate possible that meets your financial goals.

Further Advance

If you have taken equity release, and require further funds, the lender may charge you fees to apply. This will likely include an upfront valuation fee, and could include a completion fee.

Transferring your plan

If you already have equity release and wish to transfer your plan to a new property, known as porting, the lender may charge additional fees to cover the cost of the port.

Again, similar to a further advance, this will likely include an upfront valuation fee and often a porting fee. These costs will vary depending on your lender and property valuation.

What are the total costs of setting up an equity release plan? (including financial advice, legal advice & lender charges)

Try out our costs calculator below to get an idea of the total costs associated with arranging an equity release.

All of the costs illustrated above can be paid from the equity release loan on completion. You do not need to make any payments up-front.

While a qualified equity release advisor has written this guide, it is not intended to be used as financial nor legal advice and should not be relied upon.

To understand the full features and risks of an Equity Release plan, ask for a personalised illustration.