Understanding Inheritance Advance Loans

Waiting for an inheritance can take months, particularly where an estate includes property, investments or other assets that need to be valued or sold before funds can be released. CreditKnowledge, partnered with Provira can help you find the a solution that gives eligible beneficiaries the chance to access up to 50% of their expected inheritance before the estate is ready to distribute the funds.

An Inheritance Advance is a loan against money you expect to receive from an estate, rather than waiting for probate and the administration of the estate to be completed, an advance can give you access to part of your expected inheritance earlier.

Inheritance Advances are designed for beneficiaries and can typically be arranged both before and after Grant of Probate, Letters of Administration or Confirmation. They can also be available whether or not the deceased left a valid Will. The advance is usually repaid from your inheritance once the estate is ready to distribute the funds, which means there are no monthly repayments to keep up with.

Applications are based on the value of the inheritance and the estate rather than your personal credit score, with no monthly repayments and no property required as security.

Inheritance Advance Charges

Inheritance Advance providers typically charge an arrangement fee plus interest on the amount advanced. While terms vary by lender, you can generally expect the following:
  • Amount available: up to 50% of your expected inheritance
  • Arrangement fee: typically 1% to 2% of the advance
  • Interest: typically 1.5% to 2% per month, calculated as simple interest
  • Monthly repayments: none
  • Property security: no charge over property usually required
  • Personal guarantee: typically not required
  • Repayment: normally taken from the inheritance when the estate distributes
  • Representative APR: 26.5%
Because interest is charged on a simple rather than compound basis, you're not charged interest on top of previously accrued interest.

Representative example

An advance of £50,000 with a 2% arrangement fee of £1,000 and a fixed interest rate of 24%, repaid after 12 months, would result in a total amount repayable of £63,240 (Representative APR 26.5%). The actual cost will depend on the amount borrowed, the rate offered and how long the advance remains outstanding.

What Are the Advantages of an Inheritance Advance?

  • Access up to 50% of an expected inheritance early
  • No need to wait until the estate has been fully administered
  • No monthly repayments
  • No charge over your property
  • Personal credit score isn't the main basis for assessment
  • Simple rather than compound interest
  • Can be available before probate is granted
Interest is charged for as long as the advance remains outstanding, so a longer probate process may increase the total cost and reduce the inheritance you ultimately receive. Eligibility depends on the estate and expected inheritance, and you should consider whether borrowing is suitable for your circumstances and whether alternative options are available. Terms and conditions apply.