In the UK, Aviva provides 14 million consumers with insurance, savings, and investment products like drawdown lifetime mortgages. The company has been around for over a century, evolving to fit industry needs. Aviva’s Lifestyle Flexible Option is a lifetime mortgage with fixed interest rate. An initial lump sum is taken, with the option of releasing more cash in the future. It is a drawdown mortgage. Interest is only charged on the amount of funds used rather than the full amount available.

Features and Benefits
• Cash upon completion
• Cash on reserve
• Flexible repayment options
• Enhanced rates

Tax free cash is provided to the homeowner, with repayment due at the end of loan term. The equity release loan term is defined as death or move to a long term care facility. Aviva provides a no negative equity guarantee to protect homeowners from paying more than the home is valued at.

Aviva Lifestyle Flexible Option is suitable for homeowners 55 and older, with a minimum property valued at £75,000. Borrowers must take a minimum of £10,000 in an initial lump sum. It is available to all those who live in the UK except homeowners in the Isle of Man or Channel Islands.

Cash on reserve minimum is £15,000, where £10,000 is taken as the lump sum. Homeowners will need to release funds in £2,000 increments. Up to 50% of the cash borrowed can remain in the cash on reserve account.

Aviva offers enhanced equity release rates to individuals with health problems based on a health and lifestyle questionnaire. The maximum funds available will not change; however, there is a possibility of receiving a lower interest rate for homeowners with a significant illness. There is no maximum loan value that Aviva place on its equity release schemes.

Homeowners can add an inheritance guarantee that separates a portion of the home sale price from the equity release. This portion is set aside for beneficiaries and accounted for in the no negative equity guarantee calculation.

Aviva offers an option to borrow funds in the future to select homeowners. This is dependent on current lending criteria. There is no guarantee to the homeowner that more funds will be available should they require them. Additionally Aviva reserves the right to offer homeowners a transfer on their lifetime mortgage to a new home. It the new home meets current lending criteria a transfer may be awarded.

Flexible Repayment Options
Repayment does not occur until death, home sale, or move to a new main residence. However, homeowners do have the right to take advantage of the drawdown mortgages flexible repayment option.

This option allows clients to repay up to 10% of the amount borrowed each year. It is only an option after the first year of the home equity release. Payments can be made in four installments during the year without early repayment fees. This enables eventual repayment of the whole equity release plan should the full 10%pa be taken up.

Special Offers
Aviva has a special offer that includes a free valuation plus up to £1,000 cash back. They also offer exclusively reduced rates, which are based on personal criteria.