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.
What is a lifetime mortgage?
- Lump Sum Max allows you to borrow a one-off lump sum from the equity of your home. You must borrow a minimum of £15,000 and interest is charged on the full amount of the loan.
- Lifestyle Flexible lets you borrow an initial lump sum of at least £10,000 and set up a reserve of at least £5,000 from which to withdraw further sums when you need. You'll only be charged interest on the money you actually borrow.
For both options, we offer a fixed interest rate unique to your personal situation that will never increase. You'll also remain the homeowner and have no mandatory monthly repayments.
What's more, with our lifetime mortgage, you'll never pass any debt on to your estate or family once you pass away or go into full time care. So long as your house is sold for the best price reasonably obtainable.
A kindly reminder
Remember, interest builds up throughout the lifetime of the loan and is added to both the loan and the interest previously added. This quickly increases the amount you owe.
Your loan and interest are usually repaid from the sale of your house when you pass away or go into long term care, subject to our terms and conditions.
Equity release will reduce the amount of inheritance you can leave and may affect your tax position and eligibility for welfare benefits.
Because of this, a lifetime mortgage isn't suitable for everybody, and it depends on your personal circumstances. Find out more about our lifetime mortgage to see if its right for you.
Looking for Equity Release?
Visit our Equity Release page to see full details of what we offer.
Take a look at our latest news and guides.
Housing options for retirement
Plan now so you can afford the right accommodation for every stage of your life.
Can't afford to retire
If your pension pot is falling short of your ideal number, there are some things you can do to help.
Budgeting for retirement
See how you can make your pension money go further so you can get the retirement you've planned for.
How long will your retirement be?
Estimate the length of your retirement so that you can make the right preparations for the life you want to have when you stop working.
Retirement and divorce
What happens to pensions and retirement incomes when people separate or divorce? Find out how your financial plans could be affected with our helpful information on your rights, property and how to change your will.
When do annuities make sense?
Annuities can provide a stable income for your retirement, but they aren’t the only option. Find out if they’re the right choice for you.
The world of pensions
Find out about the different types of pension and how they can help you enjoy a happy and secure retirement.
What happens to your pension when you die?
If you’re thinking about how you can provide for your loved ones, find out if and how your pension can be passed on.
ISAs vs pensions
Explore the features and benefits of ISAs and pensions to help you work out what’s going to work hardest for your retirement savings.
What to do after someone dies
Find out what you need to do in the days and weeks following a death, as well as some longer-term considerations.
Choosing a destination: cost of living, buying a property and healthcare.
The costs of retiring abroad
We’ve compared the cost of living in the 3 top European destinations for UK retirees.
How the State Pension works
Discover when you can claim your State Pension and how much it’s likely to be worth.
What if I need care?
There are different options if you need long term care when you retire. Take a look to consider how much they might cost.
How dividend income is taxed
Find out how to make the best use of your your investments by understanding how the annual allowance works and how share income is taxed
Still need help? Give us a call.
Monday to Friday: 9:00am – 5:00pm
For our joint protection, phone calls may be monitored, recorded and saved for a minimum of 5 years. Calls to 0800 numbers from UK landlines and mobiles are free.