From 30th October 2025, Aviva has relaunched its popular Lifestyle Flexible plan under a new name - Lifestyle Flexible Advantage - introducing an innovative feature that rewards customers who make voluntary payments.
This subtle yet meaningful evolution gives customers a direct benefit for managing their borrowing more actively. Every voluntary payment made to service the interest on the lifetime mortgage will now receive an additional 10% uplift from Aviva, applied directly to the balance. This means customers’ repayments go further, helping to reduce the total cost of borrowing and preserve more equity in their home.
What’s Changed and Why It Matters
Under Aviva’s previous Lifestyle Flexible plan, voluntary payments were applied at face value - hence £200 repaid meant £200 was paid off the balance.
Under the new Lifestyle Flexible Advantage, that same £200 payment now has an extra 10% added by Aviva. So £220 is applied to the lifetime mortgage, giving customers a financial “boost” for paying off interest. This flexible interest-servicing uplift is unique to Aviva and marks a significant shift in the way lifetime mortgage repayments work.
For those who wish to make regular payments, even modest monthly contributions, this can make a significant difference to the long-term cost of the loan, which has the added benefit of helping retain more property equity over time.
How the Flexible Interest-Servicing Uplift Works
Here’s how Aviva’s new uplift feature operates:
- Any voluntary repayment first covers the interest charged during the current policy year
- Aviva then adds a 10% uplift to that interest-servicing portion of the payment
- If the repayment exceeds the interest due, the remaining amount reduces the capital balance
The above guidelines are important to follow in order to gain the maximum benefits from Aviva’s 10% uplift in payment. Making ad-hoc payments requires more consideration as to the timing of your payments. With the rule the interest must first have been charged that year, its therefore essential the ad-hoc payment follows the charge in interest to gain the FULL 10% uplift.
Practical Case Study – Showing the Effects Over Time
If a customer’s £90,000 Lifestyle Flexible Advantage lifetime mortgage at 6.3% interest accrues £5,670 in interest over the first year, they only need to pay £5,154 themselves. This is because with Aviva’s 10% uplift, £5,670 is applied - fully clearing that year’s interest.
So for every £1 the customer pays toward servicing interest, Aviva effectively contributes 10pence, thereby magnifying the repayment impact and slowing interest compounding.
Aviva’s illustration of the maths shows just how powerful this can be over time:
- No repayments: After 15 years, £90,000 grows to £225,031.
- Interest serviced monthly: The balance remains at £90,000.
- Full 10% repayments each year: The loan could be completely repaid just before year 15.
This feature offers customers the freedom to stay in control while making their money work harder.
Flexibility That Fits Real Life Scenarios
Unlike traditional repayment mortgages, Aviva’s Lifestyle Flexi Advantage plan doesn’t lock customers into fixed commitments or affordability checks. Payments are entirely voluntary. Therefore, you can start, stop, or change them at any time. Each repayment over £50 is accepted, and customers can repay up to 10% of their initial amount borrowed each year (plus any drawdowns).
*It’s important to note that the uplift from Aviva doesn’t count towards this 10% allowance.
Repayments can be made by Direct Debit, bank transfer, or debit card, and customers receive annual statements showing the total paid, the uplift applied, and the updated loan balance. Transparency – something here at Equity Release Supermarket we have always been committed to remains central to the product’s design and providing innovation for homeowners interest repayment options.
How It Compares with Other Interest-Servicing Plans
Several equity release providers currently offer interest servicing plans that reduce rates for customers who commit to regular payments. For example:
- Standard Life Home Finance – Horizon Interest Reward
- Legal & General – Optional Payment Plans
- Pure Retirement – Heritage Interest Serviced
- Just – Just For You range
- More2Life – Tailored Lifetime Interest Reward and Flexi Interest Reward
These plans typically offer rate discounts of around 0.3% to 0.5%, depending on how much interest the customer commits to pay (often 25%, 50%, 75% or 100%) and the length of time they maintain the arrangement e.g. 5, 10 or 15 years. Our equity release comparison tables can help you compare all interest servicing products.
The difference with Aviva’s Lifestyle Advantage equity release plan is its flexibility. Instead of requiring long-term commitment to gain a discount, customers receive a reward each time they make a repayment, all without being penalised if their circumstances change. There’s no affordability assessment, no missed payment consequences, and no rate reversion, unlike the current Interest Reward products.
In essence, Aviva’s approach brings the benefits of interest-servicing to customers who prefer freedom over formality.
Who Will Benefit Most?
This feature particularly suits:
- Customers wishing to protect inheritance for family by reducing interest roll-up.
- Those with surplus income who can make small, manageable payments.
- Early planners looking to retain more equity before downsizing later in life.
- Couples thinking about future care needs or estate planning.
For these clients, Lifestyle Flexible Advantage provides a clear, measurable financial advantage - turning occasional repayments into a meaningful strategy for wealth preservation.
Responsible Borrowing with Built-In Rewards
The flexible interest servicing uplift encourages responsible financial behaviour without enforcing it. For many customers, this will mean better outcomes under the FCA’s Consumer Duty principles - delivering demonstrable long-term value, fairness, and choice.
By integrating this ‘reward’ mechanism, Aviva is helping redefine what “flexible equity release” truly means - promoting smarter borrowing, not just longer borrowing.
In Summary
- Product - Aviva Lifestyle Advantage
- Launch Date - 30th October 2025
- Key Feature - 10% uplift on voluntary repayments that service interest
- Allowance - Up to 10% of loan each year (uplift excluded from voluntary payment cap)
- Repayments - Flexible, optional, and penalty-free
- Benefit - Reduced total cost of borrowing and increased retained equity
For those considering Aviva’s Lifestyle Advantage, here’s a quick summary of the core product criteria as a reminder of who the plan is designed for.
Key Product Criteria – Aviva Lifestyle Flexible Advantage
- Maximum age: - No maximum
- Minimum property value: - £75,000 (England, Scotland, Wales, Northern Ireland)
- Minimum loan amount - £15,000
- Maximum loan - No maximum - depends on property value and location
- Property types accepted - Standard construction
- House/Bungalow – Freehold (Absolute – Scotland) or leasehold
- Flat/Maisonette – Leasehold only
- Repayment flexibility: - Up to 10% of the original advance per policy year, penalty-free
- Voluntary repayment uplift: - 10% on payments that service in-year interest
- Early Repayment Charges (ERCs): - Standard fixed ERC structure over 10 years, or specific government gilt based variable ERC structure
- Availability - Single or joint applications, maximum 2 applicants, remortgage or purchase
Aviva Lifestyle Flexible Advantage replaces Aviva’s Lifestyle Flexible plan - but more importantly, it elevates it. By rewarding customers who take control of their borrowing, Aviva is setting a new benchmark for flexibility, fairness, and customer value in later-life lending.
Ready to find out how much you could release and compare plans like Aviva’s Lifestyle Advantage to other equity release plans across the whole market?
Use our free smartER comparison tool to view the latest lifetime mortgage deals tailored to your needs.
Important: Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Always seek advice from a qualified equity release adviser before proceeding so they can explain the full impact of Aviva’s 10% voluntary payment uplift.
