Article date: 20 April 2011
Aviva, the market leader in equity release, is helping its customers by improving its lifetime mortgage plans. The improvements have been introduced following feedback from customers and financial advisers and include:
- Introduction of an inheritance guarantee. This gives customers the peace of mind of knowing their family or estate will benefit from receiving a guaranteed proportion of the value of their property when they die or go into long-term care.
- Removal of the 75% initial loan restriction. Customers now have the flexibility of choosing how much of their loan they take upfront, from £10,000 to 100% of the available amount. Customers who do not initially take the full amount will have an automatic reserve available, if they want funds in future.
- Removal of admin fees for additional drawdown and redemption fees. Customers have the freedom of drawing down against their available reserve when they choose, without incurring an admin fee. New customers will no longer pay a redemption fee at the end of their loan.
Clive Bolton, ‘at retirement’ director at Aviva said: “We understand that many people are facing financial challenges in retirement. Equity release is an increasingly important option for people approaching retirement to consider, because it allows them to unlock some of the cash from their home, which is often their largest asset.
“At Aviva we offer a comprehensive range of retirement solutions, and over the last few years we’ve seen increasing demand as more customers enjoy the benefits of equity release.
“We’ve researched what customers want from our lifetime mortgage plans, and the improvements we’ve introduced will help meet their needs. We already offer competitive rates and a no-negative-equity guarantee, and we’re confident that today’s improvements provide our customers with the best value in the market.”
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Any inheritance the customer leaves will be reduced. Tax and welfare benefits may be affected.
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Notes to editors:
Aviva is one of the world's largest insurance groups* with 53 million customers worldwide and 46,000 employees.
Aviva’s main activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion*.
In the UK, Aviva takes care of its 19.2 million customers by helping them look after their future, protecting what’s important – from their health to their homes, their cars to their business – and saving for the future.
Aviva has a 10.5%** share of the UK life and pensions market and insures one in six homes and one in 10 cars in the UK. It is also one of the oldest UK insurers, with a heritage stretching back more than 300 years.
RAC, which is owned by Aviva, provides breakdown and insurance services for individuals and businesses and has around seven million customers.
Aviva is carbon neutral worldwide, and is ranked in the top 10% of socially responsible companies globally by the Dow Jones Sustainability World Index. In the UK, Aviva invested £3.8 million into local communities in 2009. Read our corporate responsibility report at www.aviva.com/cr.
Aviva’s global Street to School programme is working in partnership with Railway Children in the UK to get children living on the streets back into education and everyday life. Find out more at www.aviva.co.uk/street-to-school.
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* based on gross worldwide premiums at 31 December 2009
** Source: ABI data released August 2010