Aviva – Equity Release Provider

AvivaAviva provides savings, insurance and investment products to approximately 14 million consumers in the UK. With strong commitment to serving customers and more than a century of experience, Aviva is a leader in the financial services industry and is a strong & recognised brand. Several equity release products are provided including Flexible Drawdown plans, enhanced lifetime mortgages, flexible voluntary repayment options, and standard lump sum lifetime mortgages. Numerous features such as inheritance protection and no negative equity guarantees are also on offer.

Types of Aviva Equity Release Plans
The lifestyle lump sum max product allows homeowners to borrow a minimum of £15,000 in tax free cash. This lump sum is provided only once and as its title suggests the Aviva Lump Sum Max plan aims to provide a higher lump sum release than its counterparts. It is possible to borrow a larger amount based on the loan to value of the property in the future should there be surplus funds available. Aviva offers a fixed interest rate option with enhanced options. The health and lifestyle of the homeowner may also be taken into account which will help generate an even higher maximum equity release lump sum.

The Aviva drawdown lifetime mortgage option is named the Lifestyle Flexible Option and provides the same minimum as the lump sum max plan, but with the potential of lowering the fixed interest rate based on lifestyle and health issues. This product has a cash reserve to draw on during the life of the homeowner. A minimum of £10,000 must be withdrawn for the first year, leaving the other £5,000 to be drawn as the homeowner needs it. If the amount is more than the minimum 50% of the borrowed funds may remain in the drawdown facility and withdrawn in £2,000 increments with NO further administration fees. A new interest rate is set for each withdrawal based on the current rate for the day of withdrawal. The rate is still fixed based on that day’s rate. No interest is charged on the funds remaining in the drawdown facility which is the major advantage of drawdown lifetime mortgage schemes.

The Aviva enhanced lifetime mortgage option offers a lifetime equity release to those suffering from ill-health. The tax free lump sum can be larger than normal or the interest rate may be lowered. By completing a health & lifestyle questionnaire, Aviva will gauge the seriousness of the conditions & if qualify then a higher maximum lump sum would be offered. The enhanced version is available on the Aviva Lump Sum Max Plan.

The latest product available at Aviva provides a flexible repayment option. Borrowers are able to repay upto 10% per year of the original capital borrowed towards their loan and interest, without incurring a penalty. The repayment option can only start after 12 months of the initial borrowing period and will allow for the balance to be controlled by either repaying the interest only or even some of the capital aswell. This option is ideal for those looking to provide a guaranteed inheritance for their children.

Aviva Equity Release Calculator

Additional Equity Release Options 
Any of the available Aviva plans can include the inheritance protection option. This additional clause in the homeowner’s equity release sets aside a percentage of the home value for the beneficiaries. Upon death or moving to an assisted living facility, the home will be sold within a period of 12 months to make the full repayment of the lifetime mortgage. At this time any funds set aside for the beneficiaries is made available.

Protection under Government Regulations
The Financial Conduct Authority and Equity Release Council have agreed to provide more regulation on equity release products. With this decision a few years ago, a no negative equity guarantee clause was added to each approved equity release. This clause stipulates no lifetime mortgage owed can be more than the property value. It also protects the inheritance clause, where funds and interest rate cannot exceed the portion of value remaining after inheritance protection is added.

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