Before recommending an Inheritance Loan (also known as an Inheritance Advance or Probate Loan), brokers need to know the net value of the estate, what the loan is designed to cover and which lenders hold the best products for their clients.

As a broker, recommending an Inheritance Loan is rarely just about finding a way to help people release funds. A lot of the time, it’s about guiding someone through one of the most emotionally and financially complicated periods of their life. 

For brokers, that means not just focusing on the product itself, but also working with clients to understand the full picture before making a recommendation.

At Provira, we have a number of different Inheritance Loans available for your clients. From Estate Advances that unlock funds for estate costs, to Inheritance Loans designed to release cash early for beneficiaries.

Our loans charge simple interest, not compound interest, and we don’t charge an early repayment fee. Once the estate has been settled, we get paid directly, so executors don’t need to worry about making monthly repayments.

Get in touch today to find out more.

What are the different types of Inheritance Loans?

Before anything else, it is worth understanding what type of funding your client actually needs. “Inheritance Loan” is often used as a catch-all term, but it can usually mean one of two main products:

Inheritance Advances (for beneficiaries) 

Inheritance Advances are designed to help beneficiaries access a portion of their inheritance early. This normally happens when an estate is particularly complicated and probate is taking a long time to complete. For beneficiaries struggling financially, this can be a long time to wait.

Importantly, if a beneficiary wants to apply for an Inheritance Advance, they do not need the consent of other beneficiaries. The loan value is based on their share alone, so it is their decision.

Inheritance Advances can be used to pay for anything, from school fees to holidays or a new watch. Once the estate has been finalised, the lender is paid back directly from the estate, not from the beneficiary themselves.

Estate Advances (for executors)

Estate Advances, Inheritance Tax Loans or Executor Loans are designed to help executors cover estate costs. This could include paying Inheritance Tax, covering legal fees, or even funding property improvements to maximise sale value.

Estate Advances are applied for on behalf of the whole estate and can only be used for covering estate costs, nothing personal. 

Importantly, executors are not personally liable for repaying the funds – they are simply paid back once the estate is settled. 

For brokers, knowing which product will benefit their client is key. 

Ask yourself: Are you solving a personal finance issue for a beneficiary, or helping an executor pay estate costs? The answer will help you recommend the right product to your client.

Understanding how estates underwriting works for Inheritance Loans

Another important thing to know is how estate underwriting works. This is so that you are able to communicate clearly with lenders around your client’s specific situation.

Unlike traditional loans, inheritance finance is not based on the borrower’s credit score or payment history. Instead, lenders focus entirely on the net value of the estate.

That means they will want to know:

• The total net value of the estate 
• The total value of each beneficiary’s inheritance (for Inheritance Advances)
• The mix of assets (property, cash, investments)
• Any liabilities
• How far into the probate process the estate is

At Provira, we lend up to 50% of the net value of the estate or inheritance, so having this information to hand can help your client maximise the loan they are entitled to.

Many underwriters will also want to see specific documents. Brokers should be prepared to supply:

• Death certificate
• Copy of the will (if available)
• Probate status
• Full breakdown of estate assets and liabilities
• Details of the acting solicitor

Working with an experienced lender like Provira can make this process easier. Our team works with brokers every day to provide the best terms for their clients.

To find out more about how we can help, speak with us today.

Defining your client’s exit plan and potential delays

As well as the estate details, every Inheritance Loan or Estate Advance needs a clear and realistic exit plan. Without one, lenders are very unlikely to lend to your client. 

In most cases, the loan is repaid once the probate process is completed and the estate finances are distributed. However, probate delays are becoming increasingly common, and property sales do not always go to plan.

Because of this, it’s always worth looking at how a lender charges interest. If your client is signed up to a lender that charges compound interest, but probate becomes delayed, this can eat into the estate over time.

At Provira, we only charge simple interest, not compound interest, so your clients always know exactly what the monthly charge is. We don’t charge any early repayment fees and only ask for the loan to be repaid once the estate has fully been settled.

How much do Inheritance Loans cost?

One of the most important conversations brokers need to have is around the cost of taking out the loan.

At Provira we charge:

• Arrangement fees of around 1% to 2% of the value of the loan amount
• Monthly interest rates, often between 1.5% and 2%
• Simple interest rather than compound interest

How Provira supports brokers and their clients

When it comes to Inheritance Loans, we understand that the experience a client has matters just as much as the outcome. That’s why our team is on hand to support them at every stage. 

Clients can normally borrow up to 50% of their inheritance or the net value of the estate within days, giving them a clear and easy way forward. 

But most importantly, at Provira, behind the product is a team that understands probate is not just paperwork, it’s a life event.

If you are working with a client that needs access to funds before an estate is settled, get in touch with the team at Provira to see how we can help.