- ‘No negative equity’ guarantee means clients will never have to repay more than the money received from the sale of the property as long as it is sold for the best price reasonably possible.
- The amount a client can release from their property depends on a number of factors, including their age and the value of their property.
- Although taking out a lifetime mortgage will always reduce the inheritance your client can leave, with Aviva they can opt for our inheritance guarantee. This means when the clients home is sold, we guarantee that the client or their estate, will get a specified share of the amount it’s sold for. Choosing this option will reduce the amount they can borrow and can only be added at outset. For full details please speak to your consultant or see our equity release core brochure.
- Even if your client does not choose our inheritance guarantee there is still potential for leaving an inheritance although this is not guaranteed. Interest builds up during the lifetime of the mortgage and is charged on the total amount borrowed and the interest already added. This quickly increases the amount the client owes and will reduce the value they have in their home, possibly to nothing.
- The interest rate is fixed for 14 weeks from the day we receive the fully completed application form.
- Clients continue to own their own home and can live in it until they die or need to move into long-term care.
- No repayments are required until the client dies or moves into long-term care. However, there may be a substantial early repayment charge if the client pays back the loan early.
- Clients may be able to transfer their lifetime mortgage to a new home as long as it meets our criteria for acceptable properties.
- Clients receive a tax-free cash lump sum to spend on what they want, although depending on the size of the lump sum and the client’s personal circumstances, their tax position and entitlement to welfare benefits may be affected.
- Additional borrowing may be available in the future, depending on our lending criteria at the time.
View details of the current interest rate and APR on Lifetime Mortgages (pdf).The Lifestyle Lump Sum Max generally has a higher interest rate than the Lifestyle Flexible Option as the client can take advantage of higher loan to values.
| Criteria | Min/Max | Detail | Notes |
|---|---|---|---|
| Age limits | Min age | 55 | If joint, both must be at least 55. |
| Max age | None | ||
| Property value | Min value | £75,000 | For flats and retirement properties, 75% of the property's value is used when calculating the loan. |
| Max value | None | ||
| Loan values | Min loan | £15,000 | |
| Max loan |
£600,000 |
Larger loans are considered on request. | |
| Loan to value (LTV) | Min age 55 |
Max LTV 17.5% |
For more information about our LTVs including possible enhanced rates which depend on the clients health and lifestyle click here Find out more information about our LTVs (pdf). |
| Age 90+ |
Max LTV 51% | ||
| Residency |
The property must be in England, Wales, Scotland or Northern Ireland (and cannot be in the Channel Islands or Isle of Man). The property must be their main residence and must meet our lending criteria. If the property is leasehold, the lease must have a minimum unexpired term of 160 years minus the age of the younger borrower. | ||
For full details of all our charges please see our Tariff of Charges (pdf)
| Type of charge |
Detail | Notes |
|---|---|---|
| Interest |
Calculated on a daily basis and compounded annually. View details of the current interest rate and APR on Lifetime Mortgages (pdf).
| |
| Arrangement fee | £689 | Further fees will apply to additional borrowing. |
| Valuation fee | Estimated property value | Valuation fee |
| £75,000 – £100,000 | £165 | |
| £100,001 – £150,000 | £195 | |
| £150,001 – £200,000 | £235 | |
| £200,001 – £250,000 | £270 | |
| £250,001 – £300,000 | £295 | |
| £300,001 – £350,000 | £320 | |
| £350,001 – £400,000 | £345 | |
| £400,001 – £450,000 | £370 | |
| £450,001 – £500,000 | £395 | |
| £500,001 – £600,000 | £485 | |
| £600,001 – £700,000 | £565 | |
| £700,001 – £800,000 | £655 | |
| £800,001 – £900,000 | £745 | |
| £900,001 – £1,000,000 | £835 | |
| £1,000,001 and over | Available on request | |
| Re-inspection fee | £60 | If the home needs to be re-inspected – for example after essential repairs have been carried out |
| Re-booking fee | £195 | To guarantee the interest rate for a further 14 weeks if the application doesn’t complete within the initial 14 week period. |
| Early repayment | There may be a substantial early repayment charge if the loan is repaid for any reason other than death or the need to move into long-term care. There may also be an administration fee - for full details please see the Tariff of charges (pdf). | |
| Legal fees |
The customer is responsible for paying our legal costs as well as their own. Full details of these costs can be found in the Tariff of charges (pdf). | |
| Commission | 2% of the initial loan. | |
| Designed for customers who | Not designed for customers who |
|---|---|
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| Consider | Potential Alternatives |
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Giving advice
We have produced a Getting started with equity release (pdf) guide to help advisers who want to do business in this market. It details the steps you have to take to become fully qualified.
In order to advise on equity release you must obtain an ER1 certificate. For more information about the certificate and to download the learning material go to the Chartered Insurance Institute’s website
.
Alternatively, you can contact them on:
Tel: 020 8989 8464*
Fax: 020 8530 3052
Email: customer.serv@cii.co.uk
* Calls may be monitored and/or recorded
Contact us
Risk and Retirement support team can help you with any technical, marketing and other pre-sales queries on our lifetime mortgages. The team can provide you with:
- Quotes
- Literature
- Sales ideas
- Management of new business issues
- Full sales support function on-site
If you don't have an agency with us they can also send you an Agency Request Form.
We have a wide range of support staff available to help you, view our contact details to find the right number that meets your needs.
