< Equity Release

What is a lifetime mortgage?

Explaining the type of equity release we offer

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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 do have the option to make repayments.

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.

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