Aviva Equity Release Reviews
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- Award winning Equity Release Lender
- Available to customers who are 55 or older
- Guaranteed no negative equity
Once you have read the Aviva Review, you could compare equity release reviews from other providers and as a starting point use the equity release calculator to see how much cash you could release from your home.
The Aviva equity release review focus’ on Aviva who are one of the most established equity release lenders in the UK, having provided lifetime mortgages for over 200,000 people since 1998.
In general terms the Aviva business has over 31 million customers worldwide and offers a wide range of products that include insurance, investment, retirement and healthcare.
The Aviva Lifetime Mortgage plans are of course regulated by the Financial Conduct Authority and they are members of the Equity Release Council, which means they have voluntarily agreed to abide by the principles of their membership. Plus Aviva have won awards for their products and services including:
- What Mortgage Best Equity Release Lender 2016
- What Mortgage Best Lifetime Mortgage Provider 2016
- Personal Finance Awards Best Equity Release Lender 2015 / 2016
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.
Are you eligible for the Aviva Lifetime Mortgage?
Once you have read your equity release reviews, before you decide on an equity release scheme with any provider it is important that you fully understand the implications of a lifetime mortgage; look at all the options available to you and discuss everything with the family.
Therefore it is good to know that Aviva will only approve a lifetime mortgage if the customer has been advised by a professional financial advisor.
In addition, to qualify for an Aviva equity release plan the following must apply:
- The youngest applicant is a homeowner aged 55 or older
- You are mortgage free or have a small mortgage which will need to be paid off from the money you release
- Your home is in the UK and worth at least £75,000
- This is your main residence – the property should not be unoccupied for more than six months at a time
- You want to borrow a minimum of £15,000
- Your property is freehold – leasehold may be accepted if there are 160 years remaining on the lease
- You may be able to release more money from your house if your home increases in value or you have not already borrowed the full amount available.
- You continue to live in your property but will need to ensure it is in a good state of repair, it is insured and that all bills relating to the property such as utilities and council tax are paid.
- An Aviva lifetime mortgage is designed to last for life however you do have the option to pay it off early but may pay a substantial early repayment charge as a result.
- A fixed interest rate will be applied to the loan throughout its term depending on rates at the time you take the plan out and the product chosen. The interest rates on an equity release plan are higher than on standard mortgages as you are not required to make any repayments through the term of the mortgage.
- If you move, your equity release mortgage can move with you if your new property meets the lending criteria at that time. If the new property is worth less than your current one, you may need to pay back some of the loan and interest.
Aviva Equity Release Calculator
For a quick indication of the amount of money you could release from your home, the Aviva website has an equity release calculator that you can use based on your age, type of property and the value of your home.
For example if you are a 65 year old living in a house worth £250,000, the Aviva equity release calculator shows that you could release up to £75,000. This is only a guide and not a guarantee so you would need to speak to one of their advisers if you wanted a more accurate figure.
Now you have read our Aviva Equity Release Review it is worthwhile knowing how their lifetime mortgage compares to other equity release schemes.
It is worth keeping in mind that not all advisers compare the whole of the equity release market; some focus on particular companies which may not offer you the most appropriate equity release scheme.
This is why we have teamed up with Age Partnership, a leading independent specialist that reviews and compares equity release schemes with the whole of the market, including companies like Aviva, Legal & General, LV, Pure, One Family, Retirement Advantage, Hodge Lifetime, Just Retirement and Bridgewater Equity Release.
Continue your research here on how to calculate equity release on your property.
Alternatively you can read more equity release reviews here.