How Much Does Equity Release Cost? Fees Explained
Equity release has two kinds of cost: the set-up fees you pay to arrange it, and the far bigger long-term cost, the interest that rolls up over the years. This guide breaks both down so there are no surprises.
Last reviewed August 2026 · ~5 min read. That’s Family Finance holds protection permissions only, so equity release goes to a separately authorised firm we have vetted
- Typical set-up costs run around £1,500–£3,000: adviser, valuation, solicitor and any lender fee.
- Some advisers are fee-free (paid by the lender), and many lenders offer a free valuation, so upfront costs can be much lower.
- The biggest cost is the rolled-up interest on a lifetime mortgage the debt compounds and, at an illustrative 5% a year, roughly doubles in about 14 years.
- Every cost must be set out in your personalised illustration before you commit.
The set-up fees, one by one
| Fee | Typical cost | What it is |
|---|---|---|
| Adviser / advice fee | £0–£1,500 | Regulated advice. Many advisers are fee-free, paid by lender commission. |
| Valuation fee | £0–£500 | Valuing your home. Often free with the plan. |
| Solicitor / legal fee | £600–£1,500 | Independent legal advice is required for equity release. |
| Lender arrangement fee | £0–£800 | Some lenders charge to set up the plan; many don’t. |
Figures are typical market ranges; your adviser confirms the exact costs in your personalised illustration.
So what’s the total?
For most people the upfront total is around £1,500–£3,000. But with a fee-free adviser and a free valuation, the real out-of-pocket cost can be as little as your solicitor’s fee. Some fees can also be added to the loan, convenient, but they then attract interest, so paying them upfront is usually cheaper overall.
The real cost: rolled-up interest
The rate matters enormously: a lower fixed rate means the debt rolls up more slowly. So the cheapest plan is rarely the one with the lowest set-up fee, it’s the one with the right rate and features for you.
How to keep the cost down
- Use an adviser the best rate can save far more than any fee.
- Consider drawdown: take money in stages so you only pay interest on what you’ve drawn.
- Make voluntary repayments: many plans allow penalty-free partial repayments (often up to 10% a year) to slow the roll-up.
- Pay set-up fees upfront rather than adding them to the loan.
- Choose a fee-free adviser and free valuation where the plan still suits you.
Talk it through
We are an introducer, not an equity-release adviser. If you want to explore equity release, we connect you to a carefully selected, FCA-regulated equity-release adviser, no fee for the introduction.
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Common questions
Are there any hidden fees in equity release?
Regulated advisers must disclose the costs in your personalised illustration before you commit, including adviser, valuation, legal and any lender fees, plus the interest rate and how it rolls up. Always read the illustration in full.
Can I add the fees to the loan?
Often yes, which reduces the upfront cost, but any fees added to the loan then attract interest and roll up, so paying them upfront is usually cheaper over the life of the plan.
Is equity release advice free?
Some advisers are fee-free (paid by lender commission), others charge a fee (typically up to about £1,500). Either way the cost must be clearly disclosed before you proceed. We introduce you to a carefully selected, FCA-regulated adviser and do not charge for the introduction.
What is the biggest cost of equity release?
The rolled-up interest over time, not the set-up fees. Because interest on a lifetime mortgage compounds, the debt can roughly double in around 14 years at an illustrative 5% a year, so the rate and features matter far more than a low arrangement fee.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.
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We do not provide equity-release advice; we are an introducer. Where equity release may be right for you we introduce you to a carefully selected, FCA-regulated equity-release adviser. A lifetime mortgage is a loan secured against your home; to understand the features and risks ask for a personalised illustration. Equity release will reduce the value of your estate and can affect means-tested benefits.