Background

Aviva is the rebranded name of Norwich Union and is one of the longest serving providers of equity release plans today. Aviva Equity Release have arranged lifetime mortgages to over 198,000 homeowners since inception in 1998 and in doing so have facilitated £7billion in released equity.

Aviva provide a range of flexible drawdown lifetime mortgage plans and high maximum lump sum plans with the ability to also take health and lifestyle into consideration. Added to this Aviva Equity Release also provide balance control measures with their flexible 10% partial repayment facility. With the largest brand name in the equity release industry, Aviva have become synonymous with a name you can trust.

 

Eligibility

The Aviva Flexible Lifestyle Voluntary Partial Repayment scheme is specifically designed for homeowners looking for either one of the lowest equity release interest rates combined with the ability to make ad-hoc voluntary partial repayments to help control the future balance. There is also added flexibility of this being a drawdown lifetime mortgage scheme.

The minimum property valuation applicable to this Voluntary Repayment Lifetime Mortgage scheme is £75,000 with no maximum, however please contact us directly on properties over £1m.

Property location which must be a main residence, needs to be located within England, Wales, Scotland and are one of only a couple of lenders who will offer a release of equity in Northern Ireland. Aviva will only take into consideration 85% of the current market valuation of flats.

Aviva's Flexible Partial Repayment Lifetime Mortgage is available on both a single and joint life basis with a minimum age of youngest homeowner being 55 and no upper age restriction.

The minimum release on the Aviva Voluntary plan is £10,000 with a mandatory minimum reserve facility of £5,000 accompanying this. For loans greater than £1m, bespoke quotations are available via Equity Release Supermarket. Please call 0800 678 5955 for your personalised Key Facts Illustration.

 

Features

The Aviva Lifestyle Voluntary Repayment Plan is a drawdown lifetime mortgage scheme which provides an initial tax-free lump sum cash release for immediate use, with any remaining unused cash being retained in a cash reserve facility. This is ideal for those needing access to immediate cash but with a further drawdown amount in the future and one of the lowest equity release interest rates possible. The minimum withdrawal amount from the cash reserve facility is just £2,000 with no further administration charges for any additional drawdown amounts taken.

A generous free valuation of upto £1m is offered along with a fixed equity release lifetime interest rate on the initial lump sum. Any further withdrawals would be at the interest rate applicable at the time of withdrawal.

Aviva are members of the Equity Release Council all their plans come with a no-negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt to the equity release provider.

For joint applicants there is an added protection feature for the last survivor of the plan. Should one homeowner die or move into care, the surviving partner has the option to be able to repay this lifetime mortgage back to Aviva within 3 years of this event with NO penalty.

 

Options

This Aviva Lifestyle Voluntary Drawdown Mortgage enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments. However, one feature of the Aviva Equity Release plan is the Voluntary Partial Repayment Option allowing the homeowner to start making upto 10% repayments of the original amount borrowed each year with no penalty. This helps manage control the future balance of the UK lifetime mortgage scheme, either to reduce the roll-up effect of the interest, pay off the interest only or even reduce the future balance by using the full 10% allowance.

A further option for inclusion is the Inheritance Protection feature so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.

This Aviva Flexible Payment Plan comes with the option to include enhanced terms dependent upon the health conditions of the homeowners. Therefore, if poor health can be evidenced then more favourable terms can be offered by way of a further reduced equity release interest rate to their standard terms.

Alternatively, should homeowners be looking for a maximum equity release amount, then rather than a lower rate of interest, they could opt for an increased loan amount dependent upon the severity of their health condition. Basically, the poorer the health records show, the higher the maximum equity release lump sum becomes.

As part of the Lifestyle Flexi Options, Aviva offer a series of cashbacks which the homeowner can chose from. These are £0, £500 & £1,000. All cashback options will affect the lifetime mortgage interest rate offered by Aviva.

Additionally, there is the option to accept or decline the free valuation offer. By paying for the valuation upfront will actually reduce the equity release rate of interest on Aviva's plans. Therefore, all the lifestyle choices of cashbacks and valuation all have a bearing on the equity release terms offered & can be designed to suit the homeowner's requirements.

 

*£5 reduced application fee available until further notice
**Rates dependent upon personal criteria such age, health, loan amount & property details
Above published rate is based on a male age 62, living in BS11 with a property valued at £215,000 releasing £32,000 initially with £15,150 in a reserve.

 

To obtain further information or to request a quotation on the Aviva Voluntary Repayment Lifetime Mortgage scheme, please contact the Equity Release Supermarket team on 0800 678 5955 today.