What is equity release, and what’s a lifetime mortgage?
These are two terms we’ll mention a lot here. They’re similar but not quite the same. Equity release is when you take cash out of the home you own without having to move. A lifetime mortgage is the most common type of equity release, and the kind we offer.
How does a lifetime mortgage work?
It’s a long-term loan secured against the value of your home, which you can apply for any time after you turn 55. You’d borrow a cash lump sum, but there are no monthly payments. Instead, interest builds up for as long as you have the mortgage and is charged on the total amount borrowed and the interest already added. This quickly increases the amount you owe.
When you (and your partner, if you’ve taken it out jointly) pass away or need to go into long-term care, subject to our terms and conditions, the loan and any interest that’s built up is paid back – normally using money from selling your home.
You need to know that taking out any type of equity release means you will leave a lower amount behind to loved ones. It may also have a tax impact and affect whether you can still claim certain welfare benefits.
Our free guide has more details that will walk you through the benefits and risks of the lifetime mortgage we offer.
What are the other types of equity release?
The other main kind of equity release is known as a home reversion plan. This is when you’d sell all or part of your home to the provider for less than its market value. In return you get a tax-free cash lump sum or regular income while you carry on living there without paying rent. We don't offer home reversion plans.
Are you eligible for a lifetime mortgage?
Before we start zooming in on the smaller details, let’s stop to check if a lifetime mortgage is possible for you. For starters you’ll need to:
- Be at least 55 – and that applies to each homeowner
- Own a home in the UK, not including the Isle of Man or the Channel Islands
- Own a home worth £75,000 or more
- Want to borrow at least £15,000
What can you use equity release for?
That’s mostly up to you. But releasing equity is a huge decision and commitment, so we have to be happy you’re doing it for the right reasons when you apply for our lifetime mortgage. Like giving your (unintentionally) retro kitchen a much-needed refresh. Filling up your retirement tank to make yourself a little more comfortable. Or helping your kids with a leg up on the property ladder.
Is equity release safe?
Yes. As an equity release provider, we’re regulated by the Financial Conduct Authority (FCA). We’re also a member of the Equity Release Council, and follow their standards for protecting customers.
If you take out a lifetime mortgage with us, we also promise that you or your estate will never have to pay back more than your home can be sold for, as long as it's sold for the best price reasonably obtainable.
You can also read our answers to other common equity release concerns.
What are the pros and cons of our kind of equity release, a lifetime mortgage?
It’s important to look at everything before you apply for our lifetime mortgage – the great bits and the not-so good things.
How much money could you release from your home?
Get crunching the numbers with our calculator, for an idea of how much tax-free cash you could be able to release from the value of your home.
How long does equity release take – and how do I apply?
A straight-forward lifetime mortgage application with us should take around 8 to 10 weeks. That's from when you first apply to the money landing in your bank account. We’ve put together a stride-by-stride outline of how this could unfold, and you can read more about the application process here.
Equity release FAQs
What are the different types of equity release?
Do I still own my own home?
Are there any fees?
What happens when it’s time to sell the house?
Can I end the lifetime mortgage early?
"We were able to tick off the long list of things we needed to get done – and still have some cash left over for emergencies."
Lifetime mortgage customer
Get specialist equity release advice
Take your first step by arranging a call with a UK-based equity release adviser. You don’t have to commit to anything, it’s just to see if it’s an option for you. And you won’t pay a separate advice fee. Instead, we'll make a commission payment to the adviser on completion of your loan. Here are two ways to get in touch.
Call us free
Ring now and make an appointment with an equity release adviser.
0800 141 3493
- Monday to Friday: 9:00am - 6:00pm
- Weekends and Bank Holidays: Closed
Ask us to call you
Give us your name and number, and an adviser will call you. You can pick a chosen day and whether morning or afternoon is best.Request a call back
Your call will be answered by the Aviva Equity Release Advice team, who can provide information and advice on Aviva's lifetime mortgages only. They're authorised and regulated by the Financial Conduct Authority.
Calls to 0800 or 0808 numbers from UK landlines and mobiles are free. For our joint protection, calls may be recorded or monitored, and saved for a minimum of 5 years. Our opening hours may be different depending on which team you need to speak to.