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Lifetime mortgage

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’s a lifetime mortgage?

A lifetime mortgage is a popular type of equity release. It's a long-term loan which is secured on your property. The amount you can borrow depends on your age and the value of your property.

Unlike a regular mortgage, you won't have to make any repayments before the end of the plan. Instead, each year we'll add interest onto the loan and any previous interest. The loan and the interest are repaid in full, usually from the sale of your property, when you die or have to go into long-term care, subject to our terms and conditions.

Remember - a lifetime mortgage will reduce the amount of inheritance you will be able to leave, and it could affect both the tax you pay and any welfare benefits you receive – so there’s a lot to think about.

Your options

We offer 2 types of lifetime mortgage. Here’s what you need to know:

Lifestyle Lump Sum Max

You can borrow a one-off cash sum when your plan starts. This option allows you to borrow more than if you choose the Lifestyle Flexible Option, but remember that you’ll be charged interest on the full amount you borrow from the outset.

Lifestyle Flexible Option

You’ll receive a smaller lump sum right away and set up a cash reserve to draw from, as and when you need it. This might be a more cost-effective option, as you won’t pay interest on the money in the cash reserve until you take it out.

Things to think about

A lifetime mortgage won’t be right for everyone. Take a look at the key points below to see if it’s the best option for you.

Benefits

  • You’ll still own your property.
  • You’re free to spend the money you borrow on anything you like.
  • You’ll be protected by our no negative equity guarantee, so you’ll never pay back more than you receive from the eventual sale of your home, as long as it’s sold for the best price reasonably obtainable.
  • Another feature of our lifetime mortgage is our inheritance guarantee. This lets you safeguard a percentage of your home’s value - although this may reduce the amount you’ll be able to borrow.
  • You can choose to make partial repayments after the first year of having the loan, subject to our terms and conditions.

Drawbacks

  • It will reduce the amount of inheritance you can leave.
  • Releasing equity can affect your tax position and eligibility for welfare benefits.
  • It’s a lifetime commitment. If you move home, you’ll need to transfer your lifetime mortgage too, and the new property will need to meet our lending criteria at the time. If you choose to end your lifetime mortgage early, you may have to pay a substantial early repayment charge.
  • Interest will be added to the money you borrow and any interest added to your mortgage will itself attract interest. This quickly increases the total amount you will owe.
  • If you have an existing mortgage on your home this will need to be paid off before or at the same time as taking out the lifetime mortgage. You can use the money you borrow with your lifetime mortgage to pay off your existing mortgage in full. This will not affect the amount you are able to borrow, but it will reduce the amount of cash that is available for you to spend on other things.

Your next steps

Not sure what to do next? It’s simpler than you think. Take a look at the equity release process in just 3 steps.

See the process

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

Get started

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 Mon-Fri 9am-5.30pm.

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

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