One of the best ways to support yourself in later life is to release tax-free income from your home with equity release. Without ever having to leave your home or worry about security. For many, it’s a great way to access from extra money to help out family, to help with home improvement or repairs, or just to make life a little more comfortable. You’ve worked hard and you should be able to enjoy your later years.
In essence, with Aviva, equity release translates as a lifetime mortgage, a loan on your home but without any repayments. It offers its customers the opportunity to access the equity accrued in their home with complete peace of mind.
Aviva allows you to borrow against the value of your home, add interest, both to your loan amount and to the interest added. It accumulates until you pass away or go into long term care. The home is then usually sold and the amount is taken from the sale value of the house.
No doubt, you’ve heard of Aviva. They’re huge. They’re also major players in the equity release mortgage sector too. What Mortgage recently voted them “Best Equity Release Lender 2016”. They’ve also picked up a number of other awards.
Trust is an important factor when it comes to choosing a mortgage. That’s especially true with lifetime mortgage because the older we get, the more averse we are to any kind of risk.
Aviva currently offers 2 types of lifestyle mortgages:
Similar to most other lifetime mortgages, there is some criteria to be eligible for a lifetime mortgage with Aviva. You need to be a UK homeowner over the age of 55 years old. That should make you eligible, then it becomes personalised depending on a variety of factors, such as property type and value, your health and lifestyle choices.
You’ll find some of the best lifetime mortgage interest rates with Aviva. There are no set interest rates, similar to a traditional mortgage, you’ll receive personalised interest rates related to your circumstances, the property value etc.
Aviva tries to remain transparent at all times. Although they are confident they deliver some of the most competitive interest rates available, they are up front in the fact it will be higher than traditional mortgages, which is standard for lifetime mortgages.
Aviva really prides themselves on their flexibility. You have an opportunity to partially or fully release equity, and there is nothing stopping you having the equity released at various stages.
You are able to move home, although you would possibly have to repay some of the loans if moving into a lower priced home. Additionally, you’ll still be able to leave some inheritance to your loved ones, if you choose to.
Aviva’s interpretation of a lifetime mortgage is that it is a form of equity release that gives you the opportunity to access some of the money you have in your home. Technically, it’s classified as a mortgage, a long term loan, although you don’t actually have any repayments to make.
The loan is repaid, normally upon the sale of the property upon the death of the property owners (or moving into long term care). In these cases, interest is paid on both the amount borrowed and the amount already added.
In essence, a lifetime mortgage allows you access to cash, which will ultimately reduce the value of your home, but then you can’t take it with you.
It’s really essential to trust the equity release company you choose. Being retired, or close to retirement, there is not a lot of time to recover from a disaster of choosing the wrong mortgage provider.
You need security and expertise. That’s what Aviva are able to offer.
Founded over 350 years ago, the British company delivers a variety of insurance and assurance products as well as mortgages and long term financial products. 10 years ago, they decided to sell off some of their businesses to streamline and focus on their core products.
They decided to keep their lifetime mortgage product and focus on being the best, which they achieved by getting industry approval by winning numerous awards.
The answer to the question chiefly concerns whether the money is borrowed alone or with another person. If you’ve taken the lifetime mortgage alone, once you pass away or move into long-term care, the loan is due for repayment. It’s customary for the home to be sold, the repayment made by the estate and the outstanding equity made available for inheritance.
Aviva equity release lifetime mortgages actually give you the flexibility to transfer your mortgage from one property to another. There will be some criteria to meet and if you were to move to a property with a lower value, the possibility arises of having to repay a part of the original loan or some interest.
Yes, but generally speaking, a lifetime mortgage is considered a long-term commitment. For new mortgage takers, you are allowed to pay up to 10% of the amount that was initially borrowed per annum. If you wanted to repay more, there would be an early repayment fee.
To make a repayment, you are allowed to make 4 instalments, throughout the year with the minimum instalment amount just £500 which allows for a lot of flexibility.
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You have the Right to Remain in your Home for as long as you choose
You will NEVER owe more than the value of your home due to the "no negative equity" guarantee.
You have the freedom to move to another property without financial penalty (subject to provider criteria)