What does equity release cost?
There is also the price of equity release to think about. What you might end up paying depends on the product, the provider you pick, the extras and add-ons. Here are some of the associated fees that come with equity release.
Interest rates – Interest varies according to your age, property value and the percentage you want to release. With lifetime mortgages, interest is ‘rolled up’ into the balance. Although the rate would be fixed, the amount you owe could grow significantly.
Solicitor fees – As equity release may have an impact on your estate,you will need independent legal advice to ensure you understand any implications.
Valuation fees – A lender will ask for a valuation so they can estimate the amount you can borrow.
Advice fees – This can vary and sometimes there is no fee. It’s usually not payable until the funds get released.
