01The fees, one by one

The Equity Release Council's standard descriptions for a lifetime mortgage include:

FeePaid toWhat it covers
Advice feeThe adviserAdvice on the lifetime mortgage; varies by adviser
Arrangement feeThe lenderSetting up the lifetime mortgage
Valuation feeThe lenderValuing the property, for the lender's purposes only
Legal feeYour solicitorIndependent legal advice; varies by solicitor
Funds transfer feeThe lenderSending the money to you or your solicitor

Later charges can include an early repayment charge if you repay early, and an exit fee when the mortgage is repaid.

02How the adviser is paid

An equity release adviser may charge you a fee, receive commission from the lender, or both. The firm must make clear the basis of its pay (MCOB 8), including any fee and when it is payable. MoneyHelper's typical range for the advice fee is £500 to £2,000. Ask for the fee in pounds and whether you pay any of it if you decide not to go ahead.

03Adding fees to the loan

MoneyHelper notes that some fees can be paid at completion or added to the loan. Added fees then build up interest with the rest of the loan, for as long as it runs.

An illustration: £2,000 of fees added to a lifetime mortgage at 6% a year, compounding, with no repayments, grows to about £3,600 after 10 years and about £4,800 after 15. The rate is illustrative, not a quote. Paying fees up front avoids this, if you can.

04Before you pay for advice

Equity release is a large, long-term decision that reduces what you leave and can affect means-tested benefits. Free guidance from MoneyHelper can help you decide whether to take advice at all. Our guide on equity release explains how the loan grows, and our check an adviser toolkit shows how to confirm a firm is authorised.

05Common questions

Is equity release advice free?
Some advisers charge no fee and are paid commission by the lender; others charge a fee as well. The adviser must tell you how it is paid. You still pay the lender’s and solicitor’s fees.
Do I need my own solicitor?
Yes, in practice: the legal fee pays for independent legal advice on the plan, and lenders following the Equity Release Council’s standards require it. Ask the solicitor for a fixed fee in pounds.
Can I avoid paying interest on the fees?
Pay them at completion rather than adding them to the loan, if the lender and your finances allow.

Sources and further reading

  1. MoneyHelper — what is equity release? (accessed October 2026)
  2. MoneyHelper — financial adviser fees: typical costs by type of advice (accessed October 2026)
  3. Equity Release Council — fees and charges: standard descriptions (February 2023)
  4. FCA Handbook — MCOB 8, equity release advising and selling standards

About this guide: figures are labelled with their source and date and describe the market, not any firm; illustrations are arithmetic, not forecasts or quotes. This is general education, not regulated advice or a personal recommendation, and FinancialAdvisor.co.uk is not authorised or regulated by the Financial Conduct Authority. Spotted an error? Report it and we will correct it.