Set-up fees
| Fee | Typical | Notes |
|---|---|---|
| Advice fee | £0 to £2,000 | Often a fixed £1,000 to £1,500 payable on completion; some advisers charge nothing and are paid by the lender; some charge a percentage (avoid above 2%) |
| Valuation | Usually free | Most lenders pay; a few charge £200 to £500 on high-value homes |
| Lender arrangement fee | £0 to £700 | Can be added to the loan; adding it means paying interest on it |
| Your solicitor | £600 to £1,200 | Independent legal advice is compulsory; choose a specialist |
| Lender's solicitor | Usually free | Some lenders pass on £300 to £500 |
| Total | £1,500 to £3,000 | Most of it can come out of the money released |
The interest, in real numbers
Lifetime mortgage rates in 2026 are roughly 5.5% to 7%, fixed for life. Because interest is added to the loan and then charged interest itself, the debt grows faster each year. At 6.2%, left entirely to roll up:
| Amount released | After 10 years | After 15 years | After 20 years | After 25 years |
|---|---|---|---|---|
| £30,000 | £54,700 | £74,000 | £99,900 | £135,000 |
| £50,000 | £91,200 | £123,300 | £166,500 | £224,900 |
| £80,000 | £146,000 | £197,200 | £266,400 | £359,900 |
| £120,000 | £219,000 | £295,800 | £399,600 | £539,900 |
Rule of thumb: at 6% the debt doubles roughly every twelve years. Against that, the home is usually rising in value too, and the no-negative-equity guarantee caps the debt at the sale price whatever the table says. The cost calculator shows both lines for your own figures.
The levers that bring it down
- Borrow less, later. A drawdown plan charges interest only on what you have taken. Taking £30,000 now and £30,000 in eight years costs far less than £60,000 now.
- Pay some interest. Paying the full interest freezes the debt. Paying half roughly halves the growth. Most plans allow up to 10% of the original loan a year, penalty-free, and you can stop if money gets tight.
- A lower LTV means a lower rate. Borrowing 20% of the value is priced cheaper than borrowing the maximum 45%.
- Do not add fees to the loan if you can pay them from the cash.
- Shop the market. A whole-of-market adviser will see a spread of a percentage point or more between lenders for the same case. On £60,000 over 20 years, 1% is about £40,000.
The hidden cost: what else it touches
Means-tested benefits can be reduced or lost if the cash sits in the bank (benefits guide). The inheritance shrinks by the debt (inheritance guide). And if you repay early, there may be an early repayment charge. None of these is a reason not to do it; all of them belong in the decision.
A note on the numbers. Rates, loan-to-value limits, fees and timescales are typical figures at the time of writing (2026) and vary between lenders and with your age, health and property. This is information, not advice. Equity release must be arranged through an FCA-authorised adviser, who will give you a personalised illustration before you commit to anything.
Quick answers
Is it cheaper to pay the adviser a fee or use a 'free' adviser?
Neither is automatically cheaper. A fee-charging adviser may be paid less by the lender; a free one is paid by commission. What matters is whether they search the whole market and recommend the lowest total cost for your case. Ask how they are paid and what they searched.
Are the fees taken out of the money?
Usually the advice fee, solicitor and any lender fee are deducted at completion, so you receive the net amount. You can pay them separately to keep the loan smaller.
Ready to talk to someone who can actually do it?
We introduce you to a qualified, FCA-authorised equity release adviser who will look at every option, tell you how much you could release and how fast, and never charge you for the first conversation. No obligation.