Use some of your home's value to live life your way
Equity release unlocks tax-free cash from the value of your home without you needing to move out – and with our lifetime mortgage, you can do exactly that. Just give us a call on 0800 046 2758 1 to check whether you're eligible.
You’ll remain a homeowner
There’s no need to move – you’ll still own 100% of your property once you've released its equity
No negative equity guarantee
Never pay back more than what your property is sold for, as long as it’s the best price reasonably obtainable
Tailored interest rate
We'll always give you a personalised interest rate based on your individual circumstances
A lifetime mortgage will reduce the amount of inheritance you can leave and may affect your tax position.
Is our lifetime mortgage right for you?
Our lifetime mortgage is designed to help homeowners aged 55 and over raise money to fund whatever matters most in life.
Not paid off your mortgage? No problem – you can still apply. Any outstanding mortgage debt can be paid off using the money you receive.
How does it work?
Our lifetime mortgage is a form of equity release, essentially a long-term loan secured on your property. You don’t need to make any repayments before the end of your plan. We’ll still add interest onto the loan each year at a fixed rate, but both the loan and the interest are repaid in full, usually from the sale of your property when you die or go into long-term care. Terms and conditions apply.
How can it help?
The minimum you can borrow with our lifetime mortgage is £15,000. And you're free to spend the cash however you see fit. You might be thinking about renovating your home and making it easier to live in during later life. Or perhaps you'd like to lend a financial helping hand to your family. Whatever you want from life, the Aviva lifetime mortgage helps make it happen. But, it will reduce the amount of inheritance you can leave and may affect your tax position.
What is a lifetime mortgage?
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/retirement/equity-release.
How much could you get?
Use our calculator to see how much money you could release from your home with our lifetime mortgage.
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.
Benefits and drawbacks
A lifetime mortgage can help give you a financial boost in retirement and build for the lifestyle you want in later life. But it's important to weigh up both the benefits and drawbacks before applying.
- You'll remain a homeowner
You’ll remain the legal owner of your own home until it’s sold once you and your partner have passed away or moved into long-term care
- No negative equity guarantee
You won’t ever pass any debt on to your estate or family once you pass away or go into full time care – providing your house is sold for the best price reasonably obtainable
- Flexible withdrawal and repayment options
Our lifetime mortgage gives you two options: Lifestyle Lump Sum Max, where you receive a one-off cash sum, and Lifestyle Flexible Option where you receive a smaller lump sum and a cash reserve to draw from. You'll only pay interest on the money you withdraw and voluntary partial repayments can be made (terms and conditions apply)
- Tailored interest rate
We tailor our interest rates to each individual application – meaning you'll always get a fixed rate that will never increase and is unique to your personal situation
- Our inheritance guarantee
You can safeguard a percentage of your home’s value to leave behind as an inheritance – although this may reduce the amount you’ll be able to borrow
- Reduced inheritance
Although you can safeguard a portion of your home’s value as inheritance, its sale will go towards paying off your lifetime mortgage so the amount you can leave as inheritance will reduce
- Potential tax and welfare benefits impact
Releasing equity can change your tax position and potentially alter your eligibility for welfare benefits – a financial adviser will help explain the impact
- Added interest
We add interest annually onto both your loan and interest already added, which quickly increases the amount you owe. 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
- Lifetime commitment
If you’d like to end your lifetime mortgage early, then you may have to pay a substantial early repayment charge
Are you eligible?
The amount of equity you can release depends on several factors such as age, property value and property type.
To apply for a lifetime mortgage, you'll need to:
1. Be aged 55 or older (for joint applications, all applicants must be over 55)
2. Own a home within the UK (excluding the Isle of Man and the Channel Islands) worth £75,000 or more
3. Want to borrow at least £15,000
4. Live permanently in your home. The property must be your main residence and shouldn’t be unoccupied for more than six months at a time
5. You are mortgage-free, or have only a small mortgage on your property. Your remaining mortgage will have to be paid off as a condition of taking out an Aviva lifetime mortgage. You can do this from the amount you borrow
How to apply
Our lifetime mortgage usually takes around 8-12 weeks from application stage to when you receive your sum. It’s a big decision and a lot to think about. Here’s how the process works.
Get expert advice
We can put you in touch with a financial adviser who’ll review your needs and future plans with you in person.
If our lifetime mortgage is right for you, they’ll be able to give you a personal illustration and highlight the benefits, as well as the costs and risks. If you’d like to choose your own adviser, a fee will be charged.
To get started, just call us on 0800 046 2758 1.
Think it over
Discuss your plans and options with your family and decide whether a lifetime mortgage is right for you.
If you decide to go ahead, you can complete your application form with your financial adviser.
They’ll then arrange an independent valuation of your home and confirm exactly how much money you can release, provided it meets our requirements.
Once we’ve reviewed your application, you’ll receive your offer which will confirm the amount you can borrow.
Discuss the plan with your financial adviser and solicitor, then sign the legal paperwork.
When everything is complete, you’ll receive the money though your solicitor.
Get in touch
To find out if you're eligible for a lifetime mortgage or to book an appointment with an adviser, just give us a call. Or, if you already have a lifetime mortgage with us, contact us to manage your account.
Our award-winning service has helped over 200,000 people release more than £7 billion since 1998. And, as a member of the Equity Release Council, your protection is our priority.
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