Aviva’s maximum release equity release plan is called the Aviva Lifestyle Enhanced Lifetime Mortgage. It combines a lump sum lifetime mortgage with an enhanced maximum equity release to benefit consumers with ill health.
Aviva has over 15 years of experience in the equity release industry. The company started out as Norwich Union before changing their name, but it still offers the same great experience and product benefits. Aviva lifetime mortgage products, some of which have utilised the benefits of the Aviva Lifestyle Enhanced Lifetime Mortgage plan, have helped over 100,000 people.
Details of the Aviva Lifestyle Enhanced Lifetime Mortgage
Aviva is authorised and regulated by the Financial Conduct Authority (FCA) to provide products and services for in-retirement homeowners. Aviva’s impaired life plans are available starting at age 55. The Enhanced Plan benefits those with an illness making it available to those in, or with a history of poor health whose answers on a health and lifestyle questionnaire will determine their qualification.
Joint application requires the youngest homeowner to be 55 and have a serious illness. Aviva will need information from both partners to determine lending criteria for the lifetime mortgage; however it would be the youngest applicant that would need to qualify on health grounds for any application.
The property must be located within England, Scotland, Wales & Northern Ireland and have a minimum valuation of £75,000. The lowest release available is £15,000.
Unique Features to Help Someone in Poor Health
A person with past or current illness gains security from Aviva’s ill health plan by ensuring they and their beneficiaries are taken care of in their retirement age. This ill health plan is a single cash facility. It is based on age, property type, valuation, and assessment of health records.
The Enhanced Lifetime Mortgage is a flexible plan based on size. The size of the loan has a maximum value based on the loan-to-value ratio. Consumers can decide to take the maximum or a reduced version to take advantage of other features Aviva provides.
This lifetime mortgage plan has a fixed interest rate which ensures the balance of the equity release loan will be known in the future. Thus retirees taking advantage of this fixed rate lifetime mortgage plan know the payment required at any point of the mortgage term, the end of their life or their partner’s life.
It comes with options of benefits including inheritance protection allowing a fixed percentage of the final home sale to be left to their beneficiaries. If inheritance protection is chosen this will affect the maximum amount of the mortgage based on the loan to value ratio.
As members of the Equity Release Council, the Aviva Enhanced Lump Sum Max Plan has the automatic inclusion of the no negative equity guarantee, which ensures that the final balance can ever be more than the value of the house.
New Voluntary Repayment Options
Aviva have recently upgraded their range of lifetime mortgage plans. This includes the enhanced lifetime mortgage whereby any new planholder has the option of making upto 10% per annum repayments of the original amount borrowed with NO penalty. This enables control of the future balance by having the ability to choose how much of the interest and/or capital to repay.
This new era for the lifetime mortgage market begins with consumers now managing their equity release balances, either to maintain a level balance by paying the interest only, or by paying the maximum 10% each year & repaying the whole scheme off over a fixed term.
A recent additional feature has been applied to any joint applications. Should either party die, then the survivor is able to downsize and redeem the impaired equity release scheme without penalty, as long as the repayment takes place within 3 years.
Aviva Equity Release Incentives
The Aviva Enhanced Lifetime Mortgage Plan currently has several financial offers that potentially reduce the enhanced lifetime mortgage plans set up costs. These include the option of a free valuation, £500 or £1,000 cashback. Additionally, enhanced terms have now been made available on the Aviva Flexi Plan where ill health persists the maximum equity release loan NOT be taken. Here Aviva would offer a lower interest rate than the standard flexible lifetime mortgage interest rate.