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.
Aviva place no limit on the number of repayments they will allow in any 12 month period, as long as the 10% limit isn't surpassed. 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. The rate quoted above includes no cashback.
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
The 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 £12,505 in a reserve.
To obtain further information or to request a quotation on the Aviva Lifestyle Flexible Option Lifetime Mortgage, please contact the Equity Release Supermarket team on Freephone 0800 802 1051 today.