Aviva (formerly Norwich Union) have been providing equity release schemes to UK homeowners since 1998. They have assisted over 198,000 people release almost £7 billion from their homes in order to enjoy the benefits of their lifetime mortgage products.
The Aviva Enhanced Lifetime mortgage is a maximum lump sum equity release scheme whereby your health and lifestyle is taken into account. This Enhanced lifetime mortgage scheme commences at age 55 and requires a minimum property value of £75,000.
The Aviva Enhanced Lifetime mortgage scheme 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 free valuation fee is required, 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, the property value and upon completion of a health & lifestyle questionnaire, Aviva will determine whether any enhancement to normal standard terms will be acceptable. For the Aviva Enhanced Lifetime mortgage range if ill-health persists then Aviva can offer two forms of enhancement: -
1. to increase the maximum equity release loan available over any standard terms. Ideal for those looking for the absolute maximum release
2. if the maximum equity release is not required, then a lower interest rate than the standard rates can be offered
The plan can be written on a drawdown or single lump sum basis.
For drawdown lifetime mortgages, Aviva will calculate the total cash reserve facility that is available. From this cash facility, any amount between £10,000 upto the whole of the cash facility can be initially withdrawn. Again, the Aviva Flexi 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 Tax free cash can be withdrawn from this reserve facility at anytime in the future, when additional funds are required.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 £5,000 & 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 Enhanced Lifetime Mortgage 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 paying the interest only every year, or even full repayment of the equity release mortgage over a defined period.
The Aviva Enhanced Lifetime mortgage now has the option of including an inheritance guarantee. The inheritance guarantee is designed to protect a percentage of the final sale value which can then be passed onto the beneficiaries when the house is sold.
Enhanced equity release schemes are becoming a popular way of releasing equity from your home for those looking for the maximum equity release, or the lowest interest rate possible.
*Reduced £5 application fee period until further notice.
**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 is based on a male aged 62, living in BS11 postcode with a property valued at £215,000, releasing £32,000 initially, with £12,505 in reserve.
Call 0800 028 3142 today for Compare Equity Release to calculate your Aviva Enhanced Lifetime Mortgage Rate.