Equity Release

Take control of your finances with tax-free cash released from your home.

Call us FREE on 0800 404 6220 to check if you’re eligible and schedule an appointment with an adviser - please note, the adviser isn’t employed by us, but can only advise on our lifetime mortgages. Lines open Mon - Fri, 9am - 5.30pm. Calls may be monitored/recorded.

What is equity release?

Video transcript

You’ve probably seen the value of your home increase over time

and this could mean that you may be able to use some of this equity to release a cash sum.

You may not look on your home

as part of your financial planning

but if its value has gone up, you may have been saving

for your future without realising it.

If you’re over 55

and you own a home worth at least £75,000

you may be able to unlock some of your equity

and turn it into tax-free cash with an Aviva lifetime mortgage. It’s not suitable for everybody as it depends on your personal circumstances.

And releasing equity may affect your tax position and any entitlement to welfare benefits.

Also, you may have savings and it could make sense to use these first.

But if you’re eligible,

it’s a way to access money tied up in your home, without having to move.

There are no monthly repayments. The loan and interest are repaid usually from the sale of the house when you die or go into long term care.

This is subject to our terms and conditions.

Interest will be added to the loan and interest previously added each year. This quickly increases the amount you owe…

although you have the option to make limited repayments after you’ve had the loan a year, if you like.

A lifetime mortgage will reduce the amount of inheritance you can leave…

but an inheritance protection guarantee lets you safeguard a percentage of the value of your home to leave to your loved ones, …

although this will reduce the amount that you are able to borrow.

So, how could you use the money? Well, perhaps you need to make home improvements…

or, adaptations to your home as you get older, meaning you can stay put even if health and mobility becomes more of an issue.

Maybe you could help your kids towards getting on the property ladder,

help fund your grandchildren’s education,

or use it for special treats…

like a nice holiday or a new car.

So you might find…

you can hang on to all those good memories tied up in your home…

and make some more for the future.

You can read more about the features, costs and risks…

At www.aviva.co.uk/equity-release

Equity release is a way of supporting yourself later in life by unlocking tax-free cash from the value of your home, without having to move out.

If you’re looking for extra money to help out your family, start home improvements or just make retirement a little easier, it could be a welcome boost to your bank balance.

The equity release we offer is a lifetime mortgage. It’s a loan on your home, but without monthly repayments. How? We add interest annually onto both your loan and interest already added – then, everything’s repaid once you die or go into long-term care, usually from the sale of your home, subject to our terms and conditions.

Learn about lifetime mortgages

How much could I get?

Use our calculator to have a quick look at how much money you could release. You can apply whether you’ve paid off your mortgage or not - but any outstanding mortgage will need to be paid off with the money you release. Remember, you need to be 55+ with a home worth at least £75,000 to be eligible.

I’m years old, and my is worth around

It’s important to understand the features, costs and risks of a lifetime mortgage – it’ll reduce the amount of inheritance you can leave, and may affect your tax position and access to welfare benefits.

Why equity release?

Wondering how it could help you? Take a look at these guides to find out more about why people choose equity release.

Your next steps

Not sure what to do next? It’s simpler than you think. See the whole process in just 3 steps.

Why choose Aviva?

Great experience

As one of the most established equity release lenders in the UK, we’ve helped over 200,000 people to release more than £7 billion in 18 years.

Always responsible

Your protection is our priority - that’s why we’re a member of the Equity Release Council - set up to help protect people taking out equity release.

Award-winning

We’re proud to be awarded Best Equity Release Lender by both the Personal Finance Awards and the What Mortgage Awards.

Best Equity Release Lender - The Personal Finance Awards 2016/17
Best Equity Release Provider - What Mortgage Awards 2016
Best Lifetime Product Provider - What Mortgage Awards 2016
25 years of safe equity release - Equity Release Council

FAQs

What is a lifetime mortgage?

A lifetime mortgage is a type of equity release that allows you to access some of the equity tied up in your home. It’s a long-term loan which is secured on your property. Although it’s a mortgage, you don’t have to make repayments. The loan and interest will be repaid in full, usually from the sale of your property, when you (and your partner for joint lifetime mortgages) pass away or move into long-term care (terms and conditions apply). Interest is charged on the amount borrowed and the interest already added, which quickly increases what you owe. Taking out a lifetime mortgage will reduce the value you have in your home, and therefore the amount of any inheritance you leave. Your tax position and any entitlement to welfare benefits may also be affected.

What interest rate do you apply?

Aviva lifetime mortgage interest rates are based on your individual circumstances. You will receive it in your personalised illustration. Because you don't make any payments during the term of the mortgage, a higher interest rate is usually applied than that applied to a standard mortgage.

Am I eligible for a lifetime mortgage?

Aviva's lifetime mortgages are available to UK homeowners aged 55 and over. The amount you can release will depend on a number of factors, including your age, the value of your property and the type of property you own. The amount you can release may also be affected by certain health conditions or lifestyle choices.

Does my home qualify for an Aviva lifetime mortgage?

Your home may qualify for an Aviva lifetime mortgage if it’s a residential property of standard construction in England, Wales, Scotland or Northern Ireland. We are not able to offer lifetime mortgages for properties in the Isle of Man or the Channel Islands. Please bear in mind that minimum property values apply.

We don't offer lifetime mortgages for the following property types: freehold flat or maisonette (except in Scotland), studio or basement flat, flat or maisonette in a local authority or housing authority block of more than four storeys, mobile home or houseboat, farm, hotel, retirement properties, guest house or B&B. If you are unsure whether your property is eligible, please contact us for further information.

How much equity can I release with Aviva’s lifetime mortgage?

This depends on a number of factors including the value of your home and your age when you start the plan. For a guide on how much you may be able to release from your home with a lifetime mortgage from Aviva, please use our equity release calculator.

How flexible are Aviva’s lifetime mortgages?

With the lifetime mortgage we offer, you may be able to release more in the future. You’ll be able to move home too – as long as your new home meets our lending criteria at the time – but if you move to a property of lower value, you may have to pay back part of the lifetime mortgage.

What will happen to my Aviva lifetime mortgage when I die?

That depends on whether you’ve borrowed alone or with another person. If you’ve borrowed alone, your lifetime mortgage will be due for repayment in full when you pass away or go into long-term care (terms and conditions apply). If you borrowed with another person such as your husband/wife or partner, your lifetime mortgage will be repaid when the last one of you passes away or needs to go into long-term care, subject to our terms and conditions.

Will I get a fixed interest rate if I take out a lifetime mortgage with Aviva?

This depends on what type of lifetime mortgage you choose. If you choose the Lifestyle Lump Sum Max option, you take out a lump sum amount and the interest is fixed at the start of the loan. Our Flexible option means that you take out an initial loan and have access to a reserve of money in the future when you need it. The interest on the initial lump sum is fixed at the start of the lifetime mortgage, but money you take out after that will be charged at the current interest rate at the time.

How is interest added?

Interest is charged on both the amount you borrow and any interest already added. This quickly increases what you owe and will reduce the value you have in your property, possibly to nothing. Once you’ve been referred to a financial adviser, they’ll give you a personalised illustration, which will show how the size of the loan will increase over time. Taking out a lifetime mortgage will reduce the value you have in your home, and the amount of inheritance you can leave will also be reduced as a result. Your tax position and eligibility for welfare benefits may also be affected.

What is equity release?

Equity release is a way of releasing some of the money tied up in your home. Aviva offers lifetime mortgages, which are a type of equity release plan. With our lifetime mortgages, you can continue to live in your home and use the money to get more from your retirement. Whether it's to top up your income, make home improvements, buy a new car or even take a special holiday - it's up to you how you spend it. A lifetime mortgage is a loan secured on your home. Taking a lump sum, plus the costs and interest, will reduce the value you have in your home, and therefore the amount of any inheritance you leave. Your tax position and any entitlement to welfare benefits may also be affected.

Is equity release right for me?

When you see an adviser, they’ll assess your needs and recommend whether equity release is suitable for you, or if there are better options. Although any adviser we refer you to won’t be employed by us, they can only advise you about our lifetime mortgages.

If I take out a lifetime mortgage with Aviva, will I still own my own home?

Yes, you'll still be the legal owner of your home. You’re not required to move out or hand over your ownership.

What will happen if I move house?

With Aviva, you’ll have the flexibility to move home and transfer your lifetime mortgage to your new property, as long as it meets our lending criteria at the time. If you move to a property of a lower value, then we may require you to repay part of your original loan and interest. If you move to a property of the same or a higher value, then we will not ask you to repay any part of your loan and interest. We may, however, ask for your existing property to be valued if your new property is of a similar value, which you'll need to pay for.

Are there valuation and legal fees to pay?

When you take out a lifetime mortgage with Aviva, the arrangement fee is deducted from the amount you receive. However, you’ll be required to pay the costs of a solicitor acting on your behalf. We’ll pay all our legal fees and the disbursements involved in setting up your lifetime mortgage. There may be an independent valuation fee – we’ll discuss this with your adviser. You can find out more fee information by reading our tariff of charges.

What costs are involved with an Aviva lifetime mortgage?

When you call us, we’ll refer you to an equity release adviser. There will be no fee for the advice upfront, as we include the cost within the interest rate you pay if you decide to take out a lifetime mortgage. There will, however, be an arrangement fee which will be deducted from the amount you receive. You will also be required to pay your own legal fees when you instruct a solicitor to act on your behalf. Please be aware that although the adviser is not employed by us, they can only advise you on our lifetime mortgages. There may be an upfront cost payable if you choose to seek independent financial advice.

Will there be any repayments to make with an Aviva lifetime mortgage?

No. The loan and the interest on it is only repaid once you die or go into long-term care (terms and conditions apply).

Do I have to pay anything upfront?

If you decide to take out a lifetime mortgage with Aviva, you’ll be responsible for paying valuation fees, your own legal fees and an application fee. You can find out more information by reading our Tariff of charges.

Can I still leave an inheritance?

Although the amount of inheritance you can leave will always be reduced, you can choose an inheritance guarantee on Aviva’s lifetime mortgages to ensure you can leave something from the value of your home. However, this will reduce the amount of money you can borrow.

Can I repay my Aviva lifetime mortgage early?

Yes, but you should remember that a lifetime mortgage is a long-term commitment, made to last until you die or move into long-term care. Repaying your loan in full before then may mean you have to pay substantial early repayment charges. For new customers from 28th April 2014, once you've had your lifetime mortgage for one year, you can make voluntary partial payments, with no early repayment charge. The maximum you can pay back each year is 10% of the amount borrowed. You can repay in up to four instalments a year, and the minimum you can pay in each instalment is £500.

Can I buy a new property with my Aviva lifetime mortgage?

Yes, as long as the new property fits our lending criteria at the time.

Will I qualify for equity release if I already have mortgage debt on my property?

Yes, but any outstanding mortgage debt must be repaid before you take out a lifetime mortgage, or with the money you release.

What are my responsibilities with an Aviva lifetime mortgage?

You must maintain the property and keep it in a good state. The property must also be insured and you must pay all property-related bills, such as council tax and utility bills. The property also needs to continue being your main residence – this means you’ll also need our agreement for anyone else to live with you. If the property is a leasehold you must also pay any extra maintenance fees, service charges or other sums

How will a lifetime mortgage from Aviva affect my tax position?

You don’t have to pay any tax on the money you take out, but taking out money may affect your tax position more generally.

How will a lifetime mortgage affect my benefits?

It could affect your entitlement to means-tested welfare benefits, such as council tax benefit, pension credit and certain health benefits.

Can I release any more equity from my home if I already have an Aviva lifetime mortgage?

This will depend on a number of things, such as the type of lifetime mortgage you have, the current value of your home and if you’ve chosen a feature like an inheritance guarantee.

What’s the difference between the two types of lifetime mortgage that Aviva offer?

We offer two types of lifetime mortgages. The Lifestyle Lump Sum Max enables you to release a one-off sum of money at the start of the plan. Our Lifestyle Flexible Option means you take a lower initial loan but then have access to a reserve of money in the future.

What can Aviva offer me if I’m in poor health?

If you choose the Lifestyle Flexible Option, you may be able to benefit from a lower rate of interest on the loan amount, if you qualify for enhanced terms. If you choose the Lifestyle Lump Sum Max and qualify for enhanced terms, you may also benefit from a lower rate of interest, or you may be able to borrow a larger amount.

Is there an upper age limit for Aviva’s lifetime mortgages?

No, but you do have to be at least 55.

How long will it take to get my money?

As you need to involve a solicitor when you take out equity release, the time it takes to complete your application can vary. Typically, once Aviva receive your application it takes about 3 months before you receive your money.

What happens once I’m referred to one of Aviva’s equity release advisers?

You’ll be transferred to one of the equity release adviser firms on our panel, who’ll be able to offer you advice based on your needs. These advisers are not employed by us, but can only advise you on Aviva lifetime mortgages. All of these firms are members of the Equity Release Council.

Is equity release regulated?

Yes. Equity release is regulated by the Financial Conduct Authority (FCA). The FCA is an independent body reporting to the government that helps to ensure that financial products offered to the public are fair, and meet required standards. Aviva is also a long-standing member of the Equity Release Council, a trade body set up in 1991 to help protect people taking out equity release. We make sure that we meet the strict standards set out in their Statement of Principles.

What is the Equity Release Council?

The Equity Release Council is a trade body set up to protect people taking out equity release. You can find out more by visiting their site: equityreleasecouncil.com

Will I need to change my will?

This depends on your will’s current provisions. If you have any concerns, we suggest you speak to your solicitor.

More FAQs

Contact us

New equity release customers

To find out if you're eligible for a lifetime mortgage or to book an appointment with an adviser, please call:

0800 404 6220

The adviser isn’t employed by us, but can only advise on our lifetime mortgages.

Lines open Monday to Friday 9.00am - 5.30pm. Closed bank holidays.

For our joint protection, telephone calls may be recorded and/or monitored.

Existing equity release customers

To manage your plan or notify us of a death, please call:

0800 158 4177

Monday to Friday 8.00am - 8.00pm

Saturday 8.30am - 5.00pm

Sunday 10.00am - 4.00pm

Closed bank holidays.

Outside the UK? Please call:

+44 1603 603 997

For our joint protection, telephone calls may be recorded and/or monitored.

Join MyAviva

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