Aviva Equity Release & Lifetime Mortgages Review 2022

Do any of the following apply to you?

  • Do you have a mortgage you need to pay off?
  • Do you require money for repairs or home improvements? Like a new kitchen or bathroom.
  • Would you like to help a family member purchase their first home?
  • Would you like to pay off all your credit cards and loans and have zero monthly payments?
  • Would you like a better lifestyle, change your car or have a well-deserved holiday?

Release Equity From Your House As A Cash Sum Or Regular Payments

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The brokers we work with can compare plans from many providers

equity release providers

Equity Release

The broker will compare options from the following brands only: Aviva, Hodge Lifetime, Just (Just Retirement), Legal & General (L&G), LV (Liverpool Victoria), More2Life, OneFamily, Pure Retirement, Retirement Advantage.

Key points:

  • Equity Release Council Members Since 1991
  • Voted Best Equity Release Lender by the What Mortgage Awards and The Personal Finance Awards
  • No Negative Equity Guaranteed

Find the information you need to know about Aviva Equity Release lifetime mortgages in this review, use the calculator and discover how much you can raise tax-free with Aviva Equity Release.

About the Aviva Brand

Aviva is among the longest running brands in the equity release market and has been members of the Equity Release Council since 1991. To date, they’ve provided over 200,000-lifetime mortgages to eligible homeowners over the age of 55.

On a larger scale, Aviva has 31+ million customers internationally, covering a range of investment products, retirement finance as well as healthcare cover. For this Aviva Equity Release review, the information to follow relates to the lifetime mortgage range specifically for over 55s.

The Equity Release Options from Aviva

Aviva offers two-lifetime mortgage products. Both plans give the joint homeowners the assurance that they can remain in their home, otherwise known as the Right of Tenure, which is a guarantee that your property will remain yours until both people either die or go into a long-term care home.

On both plans, there are no ongoing payments required. All monies owed as part of the lifetime mortgage will be repaid when your property sells. It should be noted that while funds released through the Aviva Equity Release Plans are tax-free, it can affect your tax situation and any means-tested state benefits.

  • The Aviva Lifestyle Flexible Option

Aviva’s Lifestyle Flexible plan is a drawdown scheme. You can apply for a minimum of £10,000, leaving a further £5,000 on reserve to withdraw in the future. This can be beneficial for homeowners over the age of 55 who want a lump sum payment but not as much as the £10,000.

Alternatively, as part of retirement planning, a higher threshold up to the maximum LTV you’d be eligible to borrow at can be agreed initially, leaving surplus funds on reserve to withdraw throughout your retirement years. In terms of interest, the only interest payable on the Flexible plan is on the funds you receive and not what’s approved but held in reserve for future use.

Depending on your age, lifestyle and existing health conditions, it may be possible to secure more favourable interest rates on this plan too.

The Aviva Lifestyle Lump Sum Max

The Lump Sum Max option has a minimum loan amount of £15,000 and is paid as a tax-free, one-off payment. It may be possible to borrow more in the future, but there is no guarantee.

Also Included in Both Aviva Equity Release Plans:

  • Inheritance Protection Guarantee

Eligible homeowners can use this option as a safeguard to keep a percentage of your home equity aside to leave an inheritance for your loved ones. If you do choose this option, it will lower the total amount you’ll be eligible to borrow.

  • A No Negative Equity Guarantee

As with all members of the Equity Release Council, this guarantee ensures that your estate will never owe more than the amount your property eventually sells for. Simply put, it’s impossible to owe more so your family won’t be left with a debt to repay.

  • Voluntary Partial Repayment Option

After the first year on any of the two Aviva Equity Release Plans, you can make voluntary payments up to a maximum of 10% on the loan capital borrowed per year. The minimum partial repayment is £500.

Eligibility Criteria For Aviva Equity Release

While it’s always a good idea to stay informed on financial products, equity release reviews will only take you so far. As equity release schemes are regulated by the Financial Conduct Authority, Aviva plans for lifetime mortgages are only available through financial advisors

So the first stage to be eligible is to consult with a financial advisor for expert advice before you can access any of the Aviva equity release plans.

  • The minimum age requirement is 55 years old.
  • Homeowners must be mortgage-free. If you currently have a mortgage balance outstanding, it will need to be repaid with the funds released.
  • Both plans are subject to a minimum home valuation of £75,000 and must be in the UK.
  • Your property must be your main place of residence and occupied for more than six months per the calendar year.
  • The property must be freehold. In some cases, leaseholds can be considered, but there will need to be at least 160 years left to run on the lease.

Key Points from the Aviva Fine Print Reviewed

  • It may be possible to borrow more against your home equity if your property value increases and you have not borrowed up to the maximum LTV available.
  • You will need to continue living in the property, keeping it in a good state of repair, making all payments on time, including council tax and utilities and maintain appropriate property insurance for the duration of the loan.
  • Aviva Equity Release products are designed for life. There is an option to repay; however, it will involve a substantial early repayment charge.
  • Interest rates on both Aviva Lifetime Mortgage products are higher than standard mortgages. There are no requirements to make repayments. The interest rate provided in your initial mortgage offer will be applied for the duration of the loan.
  • Should you move home, the new property will need to meet the lending criteria in order for the lifetime mortgage to move with you. Should the situation arise that a new property is worth less than what’s been borrowed against your existing home’s value and equity held, some of the capital plus interest on the funds released may need to be repaid.

Use the Aviva Equity Release Calculator for a Guideline on How Much You Can Borrow

The Aviva website has an equity release calculator you can use to estimate how much you could be eligible to borrow through any of the two Aviva Equity Release Plans.

Access the Aviva Equity Release Calculator here

As an illustrative example using the minimum home valuation and age, a property worth £75,000 with the youngest applicant being aged 55 at the time of application, £15,375 of home equity could be released through an Aviva Lifetime Mortgage.

How 1st UK Can Help You Release Cash Tied Up in Your Home

1st UK are experienced in retirement planning and knowledgeable of the equity release market. We operate independently, which means we’re well positioned to provide our customers with a whole of market comparison, review all of the equity release companies to find the best rates, on the best terms with the guarantees for you and your family’s financial protection.

To find out exactly how we can be of service to you and if we can unlock cash tied up in your home to help you fund your retirement years, get in contact with a member of our team today.

Please note that the Aviva logo is a trademark of Aviva plc, to which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.

Equity Release

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