For those considering an Equity Release plan, it is important to speak with a qualified and experienced adviser. Indeed, the lifetime mortgage and home reversion plan providers will not accept an application from anyone who has not received professional advice.
However, the cost of that advice can vary – a lot.
Some equity release advice firms charge a fee equal to a percentage of the amount released. This can be as much as 2.25%, meaning a £200,000 release could cost you £4,500 in fees to the adviser. This is on top of the legal costs and fee to the product provider, and is usually subject to a minimum charge – typically around £1,600 or more. In addition to the fee received from you, the advice firm will also receive a commission from the provider itself – and once again this is based on a percentage of the amount released. Large advice firms who can provide a higher number of cases to a provider can command larger commissions – with some being over 3% (Telegraph Money – September 2020). For much smaller firms, like ours, the commissions are lower.
At Andy Wilson Financial Services we do not think charging a fee based on a percentage of the equity released is fair. Why not? It is because the work involved on most cases is broadly the same – the same amount of client meetings, the same research, the same work involved in producing a report detailing the recommendations and advice given and then the same work processing an application. So, it seems unfair to charge a higher fee just because the client is releasing more money, as the provider already rewards that aspect of the advice given.
What do we charge for equity release advice?
We charge a fixed fee of £990, with no vat added, whatever the equity released, whether that be £20,000 or £300,000. This can make a massive difference to the setting up costs paid by the client.
If you are considering an Equity Release plan and prefer a fixed fee basis, please contact us using the ‘Contact Me’ form below. We will be pleased to help you.
Equity Release may require a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.