Aviva Equity Release options
There are two Lifetime Mortgage plans on offer that we focus on in this Aviva Equity Release review. Subject to the terms and conditions, both options let you remain in your home until you (and your partner if choosing a joint lifetime mortgage plan) die or move into long-term care.
With both types of Aviva equity release plan you won’t have to make repayments as the money is repaid from the sale of the house when the loan ends and the money released is tax free (it may still affect your tax situation and any benefit you may receive).
Lifestyle Lump Sum Max
This lifetime mortgage plan allows you to borrow a lump sum cash payment of £15,000 or more with the option of borrowing a further amount at a later date, subject to your age and value of your home.
Aviva Flexible Option
The Aviva lifestyle flexible equity release scheme still pays out an initial lump sum of money however it also gives you the option to have a cash reserve to draw from in the future. This could be a more cost-effective option if suitable as this flexibility means you only pay interest on the money that has actually been borrowed and not the money held in reserve.
With this type of equity release mortgage the minimum initial loan is £10,000, with a minimum of £5,000 in the cash reserve for future use.
More favourable interest rates may also be available depending on your health and lifestyle.
The Aviva equity release schemes included in this review also offer the following:
No Negative Equity Guarantee – which means your estate will never owe more than the price the property is sold for.
Inheritance Protection Guarantee – which gives you the option of safeguarding a percentage of your home’s value to leave as inheritance. This will reduce the amount you are able to borrow however it may be worth considering if you prefer to leave something for the family.
Voluntary Partial Repayment – which gives you the option of making repayments after an initial 12 month period if you wish. The maximum annual amount you can repay is 10% of the amount borrowed, or a minimum of £500.