What are the costs involved?
To make sure you know what costs to expect from Legal & General, we have provided the details below. None of the costs are payable until your mortgage completes and your funds are released, so there are no upfront costs.
If you choose to use an independent adviser, these costs may differ.
What we will not charge you
Some mortgage advisers charge a fixed fee for advice. Others may charge an advice fee that is a percentage of the total loan amount. In addition, all lifetime mortgage advisers receive a payment from the product provider. As a result, many advisers receive both an advice fee and payment.
At Legal & General, we do things differently:
We do not charge an advice fee
Legal & General does not charge an advice fee.
Instead, our advice costs are covered by a payment we receive from Legal & General Home Finance Limited (the mortgage provider).This payment is only received when the Lifetime Mortgage completes.
This is not a direct cost paid by you, but is included in the product charges and interest rate you pay if you decide to take out the product.
If you want to know more please call us on the number detailed below, and one of our Customer Service Agents will be happy to explain.
We do not charge a valuation fee
We arrange for an independent valuation to value your house, this is all part of our service, so we don’t charge a fee.
What we will charge you
Below are the costs you can expect from Legal & General. These costs are only payable when you complete on your mortgage, and not before:
Arrangement fee (sometimes known as an application fee)
Our arrangement fee is either £599, or for some products, there is no arrangement fee at all.
There is also a fee of £30, to transfer your money to your solicitor on completion.
You’ll need to appoint your own equity release specialist solicitor to act on your behalf. Fees are typically £650.
The interest rate is fixed which means it won't change over time. The interest is the amount we charge on the money we lend you. Any unpaid interest is added to the loan each month. Interest is then charged on the loan, plus any interest already added. This is known as compound interest or roll-up interest. You don't pay this until you die or enter long-term care (although you can repay interest during your lifetime if you prefer).
There may be cheaper ways to borrow money.
A lifetime mortgage is a loan secured against your home.