Aviva (formerly Norwich Union) have been providing equity release schemes to UK homeowners since 1998. They have assisted over 198,000 people release over £7 billion from their homes in order to enjoy the benefits of their lifetime mortgage products.
The Aviva Flexible Lifetime mortgage is a drawdown equity release type with their equity release schemes commencing at age 55 and requiring a minimum property value of £75,000.
The Aviva Flexible Lifetime mortgage now has the advantage of the inclusion of the new Aviva Flexi tool. This unique concept allows the bespoke design of your plan around the features 'you', the client requires.
Therefore, you can build into the scheme any feature you require with options such as £0, £500 or £1,000 cashback payable on completion. Additionally, you can also select whether a valuation fee is payable or not.
In selecting any additional feature will influence the interest rate charged. Hence, the more offers included the higher the interest rate becomes etc.
Based on the age of the youngest applicant and property value, Aviva will calculate the total cash reserve facility that is available. From this reserve facility, any amount between £10,000 upto the whole of the cash reserve can be initially withdrawn. Again, the Aviva flex tool will allow you to change the size of this reserve if required. By reducing the size, will reduce the interest rate.
If the full amount is not taken, then the remaining funds will create the cash reserve facility.
The advantage of equity release drawdown schemes is that you only pay interest on the amount released, not the full value of the reserve.
Tax free cash can be withdrawn from this reserve facility at anytime in the future, when additional funds are required.
The reserve (drawdown) facility is guaranteed to remain subject to available funds & can be drawn upon whenever extra cash is required.
The minimum further advance that can be taken from the reserve facility is £2,000 & no further fees are charged for any additional withdrawals.
The interest rate is fixed for life on the initial cash withdrawal. Additional withdrawals taken will be fixed at the interest rate applicable at that time.
The Aviva Lifestyle Flexi now has the ability to accept unlimited repayments of upto 10%pa of the original capital borrowed year with no penalty. This product feature enables control over the future balance of the equity release plan. Indeed, there is now the choice of either maintaining a level balance - by clearing the interest annually, or even full repayment of the equity release mortgage over a defined period.
This product now has the option of an inheritance guarantee. This ensures a percentage of the final sale value is guaranteed to be passed onto the beneficiaries. This option comes with the expense of a slightly higher interest rate to the standard equity release product.
A further flexible feature which has been added applies to joint applications. Now, should one party die, the surviving planholder can then downsize & repay the equity release scheme off without ANY penalty, so long as this is carried out within 3 years of death***.
Drawdown equity release schemes are now the most popular way of releasing equity from your home.
*FREE valuation applies to property valuations upto £1,000,000 **Interest rates on the Aviva Flexi plan are dependent upon personal health criteria and the options selected.
This rate assumes a male age 62, living in BS11 postcode with a property valued at £215,000 releasing £32,000 initially with £12,505 in a reserve.
To calculate your Aviva Flexi dradown rate, please call Compare Equity Release on 0800 028 3142 today.