Equity release charges

michael079

MWT said:

michael079 said:

OK thanks so much, very helpful to understand more about the process. 

It's aviva the lender and key was the advisor 

Key typically charge £899 on new ER products so it looks like they have already increased the fee, because this is a further advance.

Has anyone mentioned any legal costs?

I would certainly check with a couple of other advisors though as there should be plenty of independents able to deal with Aviva.

Yeah the advisor yesterday said we would only require a solicitor if we switched the entire ER including the previous amount to a new lender, which we won't be doing.

Have spoke to another advisor and they've quoted £1500 so making progress! 😄

JMA74

Even if the advisor receives commission then its only going to be around £100-£150.  Most advisors wouldnt really get involved in a transaction like this as they would be barely scraping minimum wage by the time all the compliance matters and deductions are taken into account.  I can see why they would want to charge at that level for a small loan.  

Have you called Aviva's number for equity release?  They suggest they work with fee free advisors

https://www.aviva.co.uk/retirement/equity-release/#:~:text=Get specialist equity release advice,pay a separate advice fee.

Get specialist equity release advice

To find out if you could get equity release with us, get in touch to arrange a call with a UK-based equity release adviser. You don’t have to commit to anything, it’s just to see if it’s an option for you. You won’t pay a separate advice fee. Instead, we’ll make a commission payment to the adviser on completion of your loan. You can call us or get us to give you a call instead.

Call us free ^ 1

0800 092 7903

michael079

JMA74 said:

Even if the advisor receives commission then its only going to be around £100-£150.  Most advisors wouldnt really get involved in a transaction like this as they would be barely scraping minimum wage by the time all the compliance matters and deductions are taken into account.  I can see why they would want to charge at that level for a small loan.  

Have you called Aviva's number for equity release?  They suggest they work with fee free advisors

https://www.aviva.co.uk/retirement/equity-release/#:~:text=Get specialist equity release advice,pay a separate advice fee.

Get specialist equity release advice

To find out if you could get equity release with us, get in touch to arrange a call with a UK-based equity release adviser. You don’t have to commit to anything, it’s just to see if it’s an option for you. You won’t pay a separate advice fee. Instead, we’ll make a commission payment to the adviser on completion of your loan. You can call us or get us to give you a call instead.

Call us free ^ 1

0800 092 7903

I was under the assumption the financial advisor keeps the whole fee so would earn £1500 or whatever it is.

I did speak to Aviva equity release department and they told me I'd need to hire a financial advisor. Maybe the free one is just for an initial assessment? 

MWT

JMA74 said:

Have you called Aviva's number for equity release?  They suggest they work with fee free advisors

I expect that is just for new product sales rather than a further advance, I can't see anyone being willing to do a further advance just for the commission...