When taking an equity release mortgage the lender will instruct an independent surveyor to carry out a valuation on your property, the lender covers the cost of this service as the lender wants to know the property is in a good repair and worth the market value.
When you are ready to proceed you will require a solicitor to act on behalf, liaising with the lenders solicitors. Lifelink can recommend several independent solicitors to provide you with independent legal advice, typically costing around £800-£900.
Not all lenders charge “application” or “administration” fees which typically cover any setting up and legal fees the lender may incur so fees charged by the lender may vary from nothing to several hundreds.
Lifelink’s initial independent whole of market service is completely free of charge, as our advice fee is only payable on completion of your mortgage. Under FCA guidelines you must seek specialist equity release advice before making an application otherwise it won’t be accepted by any lenders.
All fees will be fully explained and confirmed in your personalised illustration before any commitments and application and only after taking into account your needs and preferences to your individual circumstances. Call Lifelink on 01189 349800 for your free no obligation consultation.
Understanding what happens with compound interest
If you take out a lifetime mortgage and choose not to pay the monthly interest, then the amount will be added to the total outstanding balance. Then interest is now charged on the new total outstanding balance, this is known as compound interest. It means the total amount you owe will grow each year, typically if all interest is added to the initial amount borrowed then the debt will double approximately every 10-15 years depending on the interest rate for the mortgage.
Should you be able to pay the monthly interest charged to your mortgage then the total amount owed will not increase therefore avoiding any effect of compound interest.
If you are thinking equity release may be for you or just interested in finding out more call Lifelink on 01189 349800 for your free no obligation consultation.
Lifelink’s expert equity release advisers will only make a personalised recommendation after finding out about your current circumstances and future needs.