What is equity release?
Equity release is a way of unlocking the value of your home and turning it into a tax-free, cash lump-sum.
It’s essentially a long-term loan that’s repaid using your home once you pass away or require long-term care. Until then, you’ll remain a homeowner with no need to move out.
Whatever financial freedom means to you in later life – renovating your home, paying off an interest-only mortgage or helping your children – equity release is designed to help make it happen.
Entering into a lifetime mortgage (or any form of equity release) will reduce the amount of inheritance you can leave behind. It may also affect your tax position and eligibility for welfare benefits.
For more information on equity release and the types of lifetime mortgages we offer, visit here.
Get more out of later life with equity release
The type of equity release we offer is called a lifetime mortgage. It’s a way of accessing your home’s value and using it however suits you best.
Whether that’s through making those vital home improvements or heading on a trip of a lifetime – the choice is yours.
How does a lifetime mortgage work?
Learn more about our equity release product, the Aviva Lifetime Mortgage.
How do interest and repayments work?
You don’t need to make any monthly repayments. Interest builds up on the loan each year, with both loan and interest repaid from the sale of your home. This happens once you pass away, go into long-term care, or you chose to voluntarily redeem. Terms and conditions apply.
Will you receive your money all at once?
You can receive either a one-off lump-sum payment or a smaller sum, with a cash reserve to draw from. So, whether you're paying the deposit for a loved one’s first home or helping with your grandchildren’s tuition fees, receive your sum in the most practical way for you.
Although it’s important to remember that equity release will reduce the amount of inheritance you can leave and may affect your tax position and eligibility for welfare benefits.
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.
Equity release calculator
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 risks
Our lifetime mortgage can help you release capital in retirement and build the lifestyle you want in later life. But it's important to weigh up both the pros and cons 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
- 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 the option to receive either a one-off cash sum or a smaller lump sum with 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
- Leave part inheritance
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
- Downsizing protection
If you want to move, and apply to transfer your lifetime mortgage to a new property that doesn't meet our current lending criteria, downsizing protection can help. If you're eligible, you can repay the lifetime mortgage with no early repayment charge. This feature is available on lifetime mortgages applied for on or after 8 April 2019. Terms and conditions apply.
- 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 benefit s 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. Everything is then 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. 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 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 an equity release 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 141 3517 ^.
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 through 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.
Already have a lifetime mortgage with us? If you're looking for help or to manage your account, try our existing customers page or contact us.
^ For our joint protection, telephone calls may be recorded and/or monitored and will be saved for a minimum of 5 years. Calls to 0800 numbers from UK landlines and mobiles are free.
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