Lifetime Mortgage - Reasonable Fees

Awakeatlast

Hi,

My parents in law are considering a Lifetime mortgage to release some equity. They are going to make some improvements to their home with the money. Their LTV will be 42%. The fees associated with arranging the mortgage are £1,500 for the broker and £800 for the solicitor.

Can anyone advise if these are reasonable please?

Thank you

Linton

We were charged almost exactly the same fees for our Lifetime Mortgage.

MWT

Awakeatlast said:

Hi,

My parents in law are considering a Lifetime mortgage to release some equity. They are going to make some improvements to their home with the money. Their LTV will be 42%. The fees associated with arranging the mortgage are £1,500 for the broker and £800 for the solicitor.

Can anyone advise if these are reasonable please?

Thank you

Half the legal and zero for anything else in our case.

There are several zero advice fee options out there including some of the High St lenders and of course StepChange Financial Solutions.

... for balance, there are also advisors out there that will charge a lot more than £1,500 so they have not gone for the most expensive option...

Linton

MWT said:

Awakeatlast said:

Hi,

My parents in law are considering a Lifetime mortgage to release some equity. They are going to make some improvements to their home with the money. Their LTV will be 42%. The fees associated with arranging the mortgage are £1,500 for the broker and £800 for the solicitor.

Can anyone advise if these are reasonable please?

Thank you

Half the legal and zero for anything else in our case.

There are several zero advice fee options out there including some of the High St lenders and of course StepChange Financial Solutions.

... for balance, there are also advisors out there that will charge a lot more than £1,500 so they have not gone for the most expensive option...

It may not be the best policy to go to a particular lender on the grounds that they offer zero cost advice.   The main lenders for lifetime mortgages are not high street names.  There can be a wide range of deals available. So it is important that you go to an advisor who deals with the whole market.   In our case, for a large sum borrowed one lender's best offer was 4% fixed for 5 years, the one we went for was 3% fixed for life.

MWT

Linton said:

It may not be the best policy to go to a particular lender on the grounds that they offer zero cost advice.   The main lenders for lifetime mortgages are not high street names.  There can be a wide range of deals available. So it is important that you go to an advisor who deals with the whole market.   In our case, for a large sum borrowed one lender's best offer was 4% fixed for 5 years, the one we went for was 3% fixed for life.

Agreed, and with fees at £1,200 they are not going to the most expensive of advisors, but it doesn't hurt to see what can be found with the free routes then see if the paid advisor can beat the deal that is already on the table, if they can then they have rightfully earned their fee...