Lifetime mortgages – the process and what happens next

If you’re considering whether equity release from Aviva could be the key to a happier future for you and your family, you might be wondering what’s involved.

We’ve put together a handy step-by-step guide so you know exactly what to expect; from your first enquiry to receiving your money, you’ll find everything you need to know below.

The type of equity release we offer is called a lifetime mortgage. It’s a long term loan secured on your property. The amount you can borrow is dependent upon your personal circumstances, such as your age and property value. Unlike a regular mortgage, you don’t need to make regular repayments. Instead, each year we’ll add interest to the loan and any previous interest, though this will quickly increase what you owe. The loan and interest are repaid in full, usually from the sale of your property, when you die or need to go into long term care, subject to our terms and conditions.

As a long-standing member of the Equity Release Council, a trade body set up to help protect people taking out equity release, we’re committed to making sure that we only provide equity release to customers who have received professional advice. Before you can take out a lifetime mortgage with Aviva, you must first consult a financial adviser - they’ll ensure that you fully understand the features and risks of the product and help you make your decision. To help make this easier, we’ve built a relationship with a carefully selected group of specialist equity release advisers who can advise throughout the process. Whilst the advisers are not employed by Aviva, they can only discuss Aviva products with you.

When we refer you to one of these advisers, you needn’t pay for the advice upfront as this will be built into our interest rates if you decide to purchase the product.

Whilst it can vary, typically the process takes 8-12 weeks from making your initial enquiry to you receiving the money to spend on almost anything you like.

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

Video transcript

Before you go inside, let’s take a look at your home. What do you see?

A house? Well, yes - but it could be a way to plan for your future too. Your home might be worth more than you paid for it, and Aviva Equity Release could help you access some of that money.

The type of equity release we offer is called a lifetime mortgage. They’re lifelong loans which are secured against your property. Unlike a regular mortgage, you don’t need to make any repayments as you repay the loan and any interest, usually from the sale of your property, when you die or go into long term care. Subject to terms and conditions.

If you’re interested, you might be wondering what’s involved?

First, you’ll need to find out whether you’re eligible by using our online equity release calculator or calling our friendly team. We’ll ask you your age, some questions about your home, and whether you have any outstanding loans secured on it.

Next, we’ll refer you to one of our partners. They’ll arrange for an adviser to discuss our products and help you to decide if any of them are right for you. The adviser will explain how much you can borrow and how the interest is applied to the loan. They’ll also explain anything else you need to think about, such as how the loan will reduce any inheritance you leave and may affect your tax position and eligibility for welfare benefits. The adviser is not employed by Aviva but will only discuss our products.

It’s also worth talking to your family to see how they feel. After all, it might affect them too.

If you decide to go ahead, your adviser will help you complete the application and arrange to have your home valued so you know exactly how much you could release. You’ll also need to appoint a solicitor to act on your behalf.

If you use one of the appointed advisers, you don’t pay an upfront fee for their advice. This will be included within the interest rate you pay if you decide to take out the plan. There will be other fees, but your adviser will outline these before you apply.

So, now you’ve an idea how the Equity Release process works, you might start to see your home in a whole new light - not just a place to live, but a way of planning for your future, too.

  • Aviva have helped more than 160,000 customers release equity from their homes.
  • We’re regulated by the FCA and are members of the Equity Release Council
  • Call us on 0800 206 2023 to start finding out if you could release some of the value locked in your home.

How the process works for you

  1. Find out more

    If you’d like to find out more, you can call us free on 0800 404 7187. Our team of friendly equity release specialists can help find answers to any questions you may have and can arrange for a no obligation appointment with a financial adviser.

  2. Eligibility checking

    Before you are referred to an adviser, we’ll ask you a few questions to make sure you’re eligible for the product. We’ll also be able to tell you how much money you might be able to release.

    • We’ll need nothing more than your name, age, address, property value/type and details about any outstanding loans secured against the property.
    • If you’re eligible, an appointment with an adviser will be then be arranged.
  3. Initial meeting with a financial adviser

    You will have an initial meeting with your financial adviser. You need to allow around 1-1.5 hours for this meeting. Typically the adviser will visit you in your home to meet with you face to face although first appointments are sometimes conducted over the phone (the adviser will call you!).

    • During this meeting your adviser will explain the features and risks of our lifetime mortgages, as well as anything else you will need to consider such as how they will reduce any inheritance you leave and how they can affect your tax position and eligibility for welfare benefits.
    • Your adviser will provide a personalised illustration and make a recommendation based upon your wants, needs and future plans.

    If you choose to speak with one of the arranged advisers, you needn’t pay for the advice upfront. If you decide to purchase equity release, these fees will be taken into consideration within the interest rate we charge on your lifetime mortgage. Please remember that whilst these advisers are not employed by Aviva, they will only discuss our products.

    There will be other fees which you will need to pay, but your adviser will outline these before you apply.

  4. Involving your family

    We encourage you to take the time to discuss your decision with your family; after all, your decision may have an impact upon them too.

    • Although taking out a lifetime mortgage will always reduce the amount of inheritance you can leave, our inheritance protection guarantee can ensure you’ll have something to leave for your loved ones. This will reduce the amount you can borrow.
    • With a lifetime mortgage from Aviva, you’re protected by our ‘no negative equity’ guarantee which ensures that you or your estate will never pay back more than the eventual sale price of the property, providing it is sold for the best price reasonably obtainable.
  5. Making your decision

    If you decide you’d like to go ahead, you will need to arrange a second meeting with your adviser to discuss the final details; they’ll also help you to complete your application form.

    • The adviser will then arrange for an independent valuation of your home, so they can tell you exactly how much money you can borrow. Your adviser can arrange for the valuation but you will need to pay for it upfront; the amount will depend upon the value of your home.
    • The amount you can borrow depends upon your personal circumstances but you could use our online calculator as a guide.
    • The condition of your property will also be checked. If there are any urgent repairs required which affect the value of the property, you may be required to undertake these repairs as a condition of your loan.

    Please note: If applicable, you will need to use your release amount to settle any outstanding mortgage as a condition of your loan.

  6. Application

    Once your application arrives with us, as long as everything is in order, we’ll send you your lifetime mortgage offer.

  7. Involving a solicitor

    Because releasing equity from your home is a contractual agreement, before we can release your money you’ll need to discuss the plan with a solicitor.

    • You’re welcome to arrange for your own solicitor but we’re on hand with an independent panel of solicitors who will act on your behalf.
    • You will need to pay your solicitor’s fee directly (typically around £350+VAT if they are a member of the National Solicitors Network)
    • We also charge an arrangement fee when you decide to go ahead and take out a plan. This fee will be taken from your loan amount. You can find more information on the different charges in our FAQ section.

There are some costs involved, but we’ll help you where we can

Typically advisers will charge a fee upfront but, if you use one of our arranged advisers, you needn’t pay for the advice upfront. If you decide to continue with equity release, these fees will be taken into consideration within the interest rate we charge on your lifetime mortgage.

In order to provide an accurate offer we need to know how much your home is worth, and to do this we’ll require an independent valuation of your property. Your adviser can arrange for the valuation but you will need to pay for it upfront.

There will also be legal fees to pay to your solicitor and an arrangement fee payable to Aviva. The arrangement fee covers our legal fees but you must make a payment to your solicitor for your own legal fees. You have the option to pay us the arrangement fee up front or we can take the fee from the total amount you borrow. Our arrangement fee is only payable if you take out the plan but your solicitor may charge for their services regardless of purchase.

Aviva UK Digital Limited introduces to Aviva Equity Release UK Limited for lifetime mortgages. Aviva UK Digital Limited is registered in England No. 09766150. Registered office: St Helen’s, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 728985.

Aviva Equity Release UK Limited. Registered in England No. 03286484. Registered office: 37 -43 Surrey Street, Norwich, Norfolk NR1 3UY. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number 310433.

Back to top