Equity Release

The table below shows the current interest rates and APRs for our two different types of lifetime mortgage. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

Interest Rate and APR	Lifestyle Lump Sum Max without inheritance guarantee	Lifestyle Lump Sum Max with inheritance guarantee	Lifestyle Flexible Option without inheritance guarantee	Lifestyle Flexible Option with inheritance guarantee
Annual interest rate	7.84%	7.84%	6.72%	6.89%
The overall cost for comparison is	8.0% APR	8.0% APR	6.9% APR	7.0% APR

These rates are correct as at 09 January 2012.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

What is an APR?

APR stands for Annual Percentage Rate. You can use this to compare the cost of different lifetime mortgages from different lenders. The APR is worked out using a common formula that all lenders use. It takes into account not just the interest rate but all the costs and charges you'll have to pay, such as arrangement fees and valuation fees. This gives you a simple figure that allows you to compare the overall costs of different lifetime mortgages more easily.

When do the interest rates apply?

The interest rate current at the date we receive your valid application is guaranteed for 14 weeks. If you complete within this period, the rate is then fixed for the lifetime of the mortgage.

If you don't complete within this period, the interest rate that applies to your lifetime mortgage will be the rate that's current on the day of completion. This rate could be higher or lower than the one that was current on the day of your application. If you want to guarantee the interest rate for a further 14 weeks, you'll be charged an up-front re-booking fee.

You'll also have to pay a re-booking fee if you cancel your application and then re-apply within 6 months of your original application. You'll find further details in your Tariff of Charges (PDF 416KB).

We'll tell you if the completion of your loan takes longer than 14 weeks and the interest rates have gone up, so you'll be able to review your application and decide whether you want to go ahead. If you choose not to proceed, any fees you've paid won't be refunded.

With the Lifestyle Flexible Option, the interest rate we apply to each release from your cash reserve will be the rate current on the day you request an additional release and is guaranteed for 14 days. If you don't complete within the period, the rate that applies to your additional release will be the rate that's current on the day we issue the money. This could be higher or lower than the rate that was current on the day of your application.

Things to think about

• The loan and interest are usually repaid by the sale of your property when you die or go into long-term care.
• As there are no monthly repayments, interest builds up through the life of the mortgage and is charged on the total of the amount borrowed and the interest already added. This quickly increases what you owe.
• Our 'no negative equity guarantee' means you'll never have to repay more than the money you receive from the sale of your property as long as this is for the best price possible.
• With a lifetime mortgage the value you have in your property will be reduced, possibly to nothing, and therefore so will the amount of any inheritance you leave. Although the amount of inheritance you can leave will always be reduced by equity release you can choose our inheritance guarantee to ensure you can leave something for your loved ones. However, this will reduce the amount of money you can borrow. Find out more about our lifetime mortgage inheritance guarantee.
• Your tax position and entitlement to means-tested benefits may be affected.

Lifetime mortgages and the Home Reversion Plan are not available in the Channel Islands and Isle of Man. The Home Reversion Plan is also not available in Northern Ireland or Scotland.

Aviva Equity Release UK Limited. No 3286484. Authorised and regulated by the Financial Services Authority. Aviva Equity Release UK Limited FSA Registration No 310433. Registered in England at 2 Rougier Street, York, YO90 1UU. www.aviva.co.uk

WC07053 01/2012