What is a lifetime mortgage.
If you're a homeowner, you've probably seen the value in your home increase over time. Equity release allows you to tap into some of this value and release a cash sum.
- You must be aged 55 or over, have a property worth at least £75,000 and be able to release a minimum of £15,000.
- You will have little or no mortgage outstanding. You must use the amount released to pay off any existing outstanding mortgage.
- You retain legal ownership of your home.
- You can safeguard a percentage of your home's value with our inheritance guarantee.
- You're protected with our no negative equity guarantee, so you, or your estate, will never pay back more than you receive from the eventual sale of your home, provided it is sold for the best price reasonably obtainable.
Things to think about
- There are no monthly repayments. Instead, interest is added to the loan and to any interest previously added each year. The loan and interest are repaid in full, usually from the sale of your home, when you die or go into long-term care, subject to our terms and conditions.
- Releasing equity from your home is a lifetime commitment.
- It will reduce the amount of inheritance you can leave.
- Releasing equity can affect your tax position and eligibility for welfare benefits.
- Equity release isn't suitable if you have savings you could use instead, or would prefer to sell all, or part of your home, or downsize.
- We'll only sell you equity release direct after you've been advised by one of our carefully selected advisers. The adviser isn't employed by us, but can only advise on our equity release products. You'll also need to seek advice from an independent solicitor.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Watch our short video to find out how equity release could help you.
Having a clear out?
I bet there’s a lot of your past hidden away inside that house. But here’s something to think about. Your future might be locked up in there, too.
You’re both over 55, right?
And you own a home worth at least £75,000?
That’s good, because equity release providers do take your age and the value of your home into account when they’re deciding who’s eligible. They’re often around this level but can vary between providers.
All right then. Let’s see what we could find locked up in the value of your home. Equity release is a way of unlocking some of the value of your property. It’s not suitable for everybody, but if you are eligible it’s a way to access money from your home without having to move.
With a lifetime mortgage, the most common form of equity release, you don’t usually have to make any repayments until you die or go into long term care, but interest will be charged on the full amount.
So let’s look at what might be inside that house…
Your grandchildren’s education
Special treats such as a nice holiday or a new car
Helping your kids get on the property ladder
Or just a more secure retirement.
Not everyone looks on their home as a part of their financial planning, but if its value has gone up, you may have been saving for your future without realising it.
So you might find you can hang on to all those good memories tied up in your home and think about a way to make some more for the future.
Taking out equity release may affect your tax position and any entitlement to welfare benefits.
You should bear in mind that equity release will reduce the inheritance you could leave – possibly to nothing.
There are plenty of things to consider before releasing equity from your home, but there are some things which might not be quite as you’d expect. Watch our short video and join us as we challenge some of the more common equity release myths.
Today we’re going to be challenging some myths.
OK. Bring on the first myth
Err... not you Colin. You’re not the sort of myth we’re after.
We’re talking about the myths of equity release, a way of releasing some of the value locked in your home..
The type of equity release offered by Aviva is a lifetime mortgage.
Many people think that taking out a lifetime mortgage means they won’t own their home any more.
But this isn’t true. It’s your home as long as you need to live in it.
Because these lifetime mortgage are, well, mortgages, some people think they’ll have to make monthly repayments.
But no regular repayments are ever required – instead the loan is repaid either when you die or if you go in to long-term care.
Some people worry that if the value of their home were to go down, their family would be lumbered with a nasty debt after they’d gone.
But as members of the Equity Release Council, Aviva offers a No Negative Equity Guarantee.
You should always talk to family members before taking out equity release. And yes, it will reduce the inheritance you could leave.
But you will have the option to take up a product with inheritance protection, so you could effectively ring fence a percentage of the value to leave to your loved ones. Bear in mind that, if you choose this option, you may not be able to borrow as much.
There are portable products available. Depending on a number of factors, including the value and type of house you’re moving into, you could be able to bring your lifetime mortgage with you when you take off for somewhere new.
So, another myth disproved. But that’s the thing about myths.
They’re not real.
Watch our short video about the equity release journey.
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.
Have a question?
Browse our Equity Release FAQs
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.