Questions you must ask about Equity Release

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Are you able to advise on equity releases of all kinds?

There are currently two types of equity release plans available: a home reversion and a lifelong mortgage.

It is important to know if your advisor can also offer advice on mortgages for residential properties, mortgages with Interest Only, or mortgages for retirement interest only (RIO). They will tell you if they offer any of these mortgages and if they are cheaper than equity release plans. For Equity Release Solicitors Near Me, visit https://www.tivoli.legal/equity-release-solicitors-near-me

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This question will help you determine if they are bound to a particular lender or if their advice is based on the entire market. You will be able to find a better deal if they offer more options and work with more lenders.

What are the costs of an equity release plan?

When considering an equity release plan, you need to be aware that there are costs from different parties.

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You may be charged:

A one-time valuation fee. This is likely to be non-refundable.
A fee for arrangement could be added to your loan amount. It may also incur interest.
Interest — A lifetime mortgage, the most common equity release method, will charge interest. If the interest is not paid, it will accumulate meaning that the interest rate increases each year.

Your solicitor

Your solicitor must provide you with legal advice before an equity release plan can be set up.

You may be charged:

A one-time fee. This is likely to be non-refundable.
A completion charge, this is usually for advising or arranging finance.

Budgeting for the above fees is usually around £3,000. Most equity release plans do not require payment until the plan is completed (when you receive your money).