Aviva Equity Release Reviews
Try the Equity Release Calculator
- 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 can compare equity release reviews with other providers, or use the calculator to see how much cash you could release from your property.
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.
Aviva Lifetime Mortgage plans are regulated by the Financial Conduct Authority. They are members of the Equity Release Council and have won these awards:
- 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
Aviva offer two lifetime mortgages that we look at in the equity release review:
- The Aviva flexible lifetime mortgage
- The Aviva premier flexible lifetime mortgage
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) die or move into long-term care.
Both Aviva equity release plans have no monthly repayments. Instead the money is repaid from the sale of the house once you have died or moved into long term care.
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.
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?
Aviva only approve lifetime mortgages to customers who have been advised by a professional financial advisor. To qualify for an Aviva equity release scheme, 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.
What should I do now?
To see how Aviva compare with other companies, take a look at our other equity release reviews.
Alternatively if you are want to see how much cash you could release, why not try our free and easy to use calculator.
Remember, when comparing plans, some advisers only work with specific companies. This is one of the reasons we have teamed up with leading specialist Age Partnership, as they compare schemes and have access to preferential rates with leading UK companies like Aviva, Legal & General, Pure Retirement, Just Retirement,Canada Life and Crown.
And don't forget, Age Partnership guarantee to beat any like for like equity release quote or they will give you £500.
Once you have read our equity release reviews, before choosing the right equity release scheme for you, always seek professional advice, ensure you fully understand the implications of a lifetime mortgage, review all the options available to you and discuss everything with the family.