How much will an adviser cost me?

Before we explain to you how much it could cost you, let’s confirm that having a good adviser on your side would pay for itself over and over again by saving you money on your mortgage rates for example or by making you more money on your investments, pension and retirement planning.

Mortgage Advisers:

The mortgage adviser will explain to you their charges in full details, however, typically the charges of a mortgage adviser are as explained below:

Mortgage Adviser could charge you a Broker’s fee which could be between £300-600 and they will get something called Proc fee from the lender which is a percentage of the mortgage amount typically between 0.35-0.50%. The mortgage adviser will get a commission from the insurance company for the protection policies such as life insurance, critical illness policy or home insurance.

Financial Advisers:

The financial adviser will explain to you their charges in full details, however, typically the charges of a financial adviser are as explained below.

They could charge an hourly fee between £150-300 per hour same way the solicitors charge, or a percentage of the investment amount.

For example if you are looking to invest or you want to transfer a pension fund of £100,000, the financial adviser would typically charge 3% of that lump sum, which is in this example £3,000.

The financial advisers would charge an ongoing charge as well which is between 0.25-1% per annum of the value the fund and this charge is paid from the fund to the adviser.

The importance of the ongoing charge is that the adviser will set regular review meetings with you to ensure that the financial plan is on track and make any necessary amendments to the investment strategy if your circumstances or your attitude towards investment risk were to change.