How long does our equity release process take?
Here are the 10 strides that can take you to releasing a cash lump sum from your home, and what will happen when the lifetime mortgage ends
Key points
- Understand the equity release process step by step, from checking your eligibility and receiving financial advice to completing your application and accessing your funds.
- Learn how long the equity release process can take and what to expect, including key milestones, required paperwork, property checks, and the typical timeframe from application to receiving your money.
- Find out what happens before, during and after taking out a lifetime mortgage, including eligibility requirements, family considerations, repayment arrangements, and important factors to consider before proceeding.
Our lifetime mortgage, the type of equity release we offer, is a long term-loan secured against the value of your home. Releasing money from your home this way will reduce the amount of inheritance you can leave behind, and possibly affect your tax position and whether you can still get certain welfare benefits.
It’s one of the bigger financial decisions you’ll make, and it’s key to be sure it’s right for you. Here are the stepping stones that lead you from considering a lifetime mortgage to the cash landing in your account – and an outline of what happens once it’s time to repay the money. It usually takes around 6 to 8 weeks from when we get your lifetime mortgage application (step 6 below) to you having the money.
How to apply for a lifetime mortgage with us
- Make sure you’re eligible
When you first speak to our team, they’ll chat through a few key details about you and your property to check whether you can take out a lifetime mortgage.
Anyone applying has to be aged 55 or over, whether that’s just you or both of you for a joint application. You also need to own a property in the UK, which doesn’t include the Channel Islands or Isle of Man, worth at least £75,000. For our lifetime mortgage the minimum loan amount is £15,000.
Finally you must have cleared any existing mortgage on your home, or only have a small amount remaining. You’d have to clear this before you apply for a lifetime mortgage, or pay off the outstanding balance using the money you borrow.
Once you’ve ticked off these basics, we can set up a meeting for you with an FCA-regulated equity release adviser. You will need to receive financial advice to take out equity release. - Be on top of your preparation
Ahead of your meeting, think carefully about how much you need to borrow and what you need the money for.
Gather up bank statements, details of your income, what your outgoings are and any state benefits you’re being paid – along with a reasonable idea of what your home’s worth today.
Also, jot down any questions or worries you want to run past your adviser. - Find out your family’s thoughts
It’s a good idea to talk to your family about your plans. Taking out a lifetime mortgage could affect them in the future when it's time for the money to be repaid. People sometimes find it helpful to bring family members along to the meeting with their equity release adviser.
Read more about talking to your family about equity release. - Meet with your equity release adviser
They’ll explain how it all works and make a recommendation based on your wants, needs and future plans. They can only give advice about our lifetime mortgage, and they’ll tell you at this point if they think it’s right for you.
If so, they’ll give you a personal illustration and go through the all-important details with you – we’re talking benefits, costs and risks. If any details feel fuzzy, go over them again until everything’s clear in your mind.
Remember, when you come to us directly, you won’t pay a separate advice fee. Instead we’ll pay the adviser commission once you complete on your lifetime mortgage. - It’s make-your-mind-up time
Now’s when you’ll put in a second meeting with your adviser.
This is to confirm you want to go ahead with the application. It’s a chance to clear up any questions you have, to go through any outstanding paperwork with your adviser, and to chat through the next steps. - Send your application our way
Your adviser will submit your application, and arrange an independent valuation of your home. You may have to pay for this up front. - Putting the spotlight on your property
If the valuation shows that your home needs any urgent repairs, you may need to complete them before we can make you an offer, or as a condition of your lifetime mortgage.
The results of the valuation will help us decide whether we can make you an offer, how much we are able to lend you and whether this depends on any conditions (such as paying off a mortgage or making repairs). - Talk to a solicitor
Accepting an equity release offer means signing a contract, and you’ll need to go through this with a solicitor. Your adviser can help arrange this.
How long this takes can vary, and may depend on whether any legal issues or question marks pop up around your property. You'll be responsible for paying your own legal fees. - Your money’s in your bank
We’ll pay the money to your solicitor when everything’s complete. Any charges to be paid, including fees or debts secured against the property, will be settled first. Your solicitor will then transfer the rest of money into your bank account. - A follow-up meeting about your finances
Fast forward a few weeks, months or years, and you may have another sit-down with your adviser to check your finances are still in shape, or to arrange wills and powers of attorney.
How your lifetime mortgage is repaid
You won’t need to pay a penny back to us along the way, although you can choose to make partial repayments (more on that in a moment). The loan is usually repaid using money from the sale of your home, once you (and your partner, for a joint lifetime mortgage) pass away or go into long-term care, subject to our terms and conditions.
Interest over the term of your loan
Each policy year, interest is added to both the loan and any previous interest that has already built up, which will quickly increase the amount owed. You’ll get an interest rate when you get your offer, which will be fixed until the lifetime mortgage ends.
Voluntary partial repayments
Each policy year, subject to our terms and conditions, you can repay up to 10% of the total amount you have borrowed, with no early repayment charge. The minimum you can repay at each installment is £50.
The payment methods we can accept for these are Direct Debit, BACS, CHAPS, Faster Payments, and Debit Card.
This option is only available if you applied for a lifetime mortgage from 28 April 2014.
If you’d like more information about how voluntary partial repayments work, including how to start making repayments, we have a guide titled 'A Guide to Voluntary Partial Repayments (PDF 197KB)'.
If you have a Lifestyle Flexible Advantage lifetime mortgage you also have the interest-servicing feature. When you make repayments that fully or partially cover the interest in your current policy year, Aviva applies an uplift - a percentage boost - to your repayment. The specific uplift percentage is shown in your Key Facts Illustration (KFI) and Offer documents. If you'd like more information about how interest-servicing partial repayments work with our Lifestyle Flexible Advantage lifetime mortgage, we have a guide which you can download here (PDF 1,410KB).
Equity release early repayment charges
Our lifetime mortgages are designed to last for the rest of your life, so it might not be right for you if you’re planning to pay it off early.
You can end your lifetime mortgage early by paying off the loan and the interest, but you might have to pay a pretty big early repayment charge to do so. We offer fixed percentage or gilt index early repayment charges, and you have to choose one when you set up the lifetime mortgage. If you want some more information about how our early repayment charges work, we have a booklet about each.
You can get a copy from your equity release adviser, by giving us a ring on 0800 206 2014, or downloading your own copy from our website:
For gilt index early repayment charges explained visit www.aviva.co.uk/adviser/documents/view/pf011612c.pdf
For fixed early repayment charges explained visit www.aviva.co.uk/adviser/documents/view/pf011601c.pdf
How the final repayment works
This is due when the last or only borrower dies or goes into long-term care, and the lifetime mortgage is usually paid back from the sale of the property. Any money that’s left after the payment is made will go to the beneficiaries of your estate – and your ‘estate’ simply means everything you owned. The people managing your estate have up to 12 months to repay the lifetime mortgage. We understand there may be circumstances where the loan can’t be repaid within 12 months, so we'll ask for updates on the plans for repayment. If progress is being made, for example the sale of the property has been agreed and is awaiting completion, we may give more time.
Interest continues to build until the lifetime mortgage has been repaid in full, so any delays will increase the amount owed when the lifetime mortgage is repaid, meaning less money could be left to your estate. The property’s home and buildings insurance must stay up to date until the loan has been repaid.
How much money could you release from your home? 
Get crunching the numbers for an idea of how much money you could be able to release from your home using our calculator.
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