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Equity Release

Lifetime mortgage interest rates and APRs explained

Our lifetime mortgage interest rates are tailored to you, so the interest rate you could get will be based on your individual circumstances.

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. You can pay an up-front re-booking fee to guarantee a new interest rate for another 14 weeks. Your new interest rate will be the one that's current on the day we receive the 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 request.

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 defined in our terms and conditions.
  • As you don't have to make 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.
  • Once you've had your lifetime mortgage for one year, you can make partial repayments on a voluntary basis if you wish. The maximum amount you can pay back each year is 10% of the amount borrowed.
  • Our 'no negative equity guarantee' means you'll never have to repay more than the money you receive from the sale of your property, provided it is sold for the best price reasonably obtainable.
  • 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 a lifetime mortgage 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, and may affect the interest rate charged. Find out more about our lifetime mortgage inheritance guarantee.
  • Your tax position and entitlement to means-tested benefits may be affected.

Lifetime mortgages are not available in the Channel Islands and Isle of Man.

WC07053 04/2014

Contact us

For more information or to find out if you're eligible for a lifetime mortgage call us on

0800 404 6220

Lines open Mon-Fri 9am-6pm, Sat 9am-2pm

Whilst we are unable to give you financial advice, if you don't have a financial adviser already we can refer you to a carefully selected equity release specialist. This adviser isn't employed by Aviva but can only advise on Aviva's lifetime mortgages.

Calls are free from a BT land line. Costs may vary from mobiles and other networks.

Or alternatively arrange for us to call you back at a time convenient to you.

For our joint protection, telephone calls may be recorded.

Are you eligible?

Use our calculator to find out if you could be eligible for a lifetime mortgage, which products may be available to you and how much you might be able to release.

Why Aviva Equity Release?

  • Over 140,000 people have released money from their home with Aviva Equity Release.
  • We have provided equity release since 1998.
  • We're award winning
20th Anniversary what Mortgage Awards 2013 Winner - Best Equity Release Lender