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 Lifestyle Flexible Option

Our Lifestyle Flexible Option is a fixed rate lifetime mortgage that can provide clients with an initial lump sum, but also allows them to set up a cash reserve which can be accessed in the future - with interest charged only on the amounts they actually take.

Cash on completion

  • Tax free cash for your client to spend as they choose
  • No repayments during loan term under normal circumstances, although this may affect their tax position or eligibility for means tested benefits – see our terms and conditions
  • No negative equity guarantee

Cash on reserve

  • Minimum total loan of £15,000 – clients can take £10,000 as an initial loan and set up a reserve of £5,000
  • Clients can release as little as £2,000 from the cash reserve at any one time
  • They can leave up to 50% of the maximum amount they borrow in their cash reserve
  • No interest payable until the money is released

Flexible options

  • Voluntary partial repayment option - after the first 12 months clients have the option to repay up to 10% of the amount borrowed each year, in up to four installments, without early repayment charges. This is only available to customers who applied for their lifetime mortgage on or after the 28th April 2014
  • Optional inheritance guarantee to safeguard a percentage of sale price for beneficiaries – see our equity release customer brochure
  • Your client may be able to apply to borrow more in the future. We don’t guarantee this and it will depend on our lending criteria at that time
  • Clients may be able to transfer their lifetime mortgage to a new home as long as it meets our lending criteria at that time. If the value of the new property is less, some of the loan and interest that has accrued will need to be repaid 

Enhanced rates

  • Clients could benefit from lower rates of interest depending on their health and lifestyle

Information you need to know about Lifestyle Flexible Option

Criteria Min/Max Details Notes

Age limits

Min age


If joint, both must be at least 55

Max age



Property value

Min value


For flats and maisonettes, 85% of the property's value is used when calculating the loan

Max value



Loan values

Min loan


The client must be able to set up a minimum total loan of £15,000, of which at least £10,000 must be taken straight away, with a minimum of £5000 in reserve

Max loan


Larger loans are considered on request

Loan to value (LTV)

Min age 55

Max LTV 13%


Age 90+

Max LTV 45%


Cash reserve

Min withdrawal


The most clients can leave in the cash reserve is 50% of the maximum amount they can borrow. We won’t let a client set up a cash reserve with less than £5,000. Each withdrawal from the cash reserve must be a minimum of £2,000. If there is less than £2,000 in the reserve the full amount must be taken at the next withdrawal

Max withdrawal


Clients can withdraw as much as they like as long as sufficient funds are available in the reserve

Max number of withdrawals


There is no limit to the number of times a client can withdraw from the reserve as long as sufficient funds are available


Property must be in England, Wales, Scotland or Northern Ireland. We don't accept properties in the Channel Islands and the Isle of Man. Property must be the main residence and must meet our property criteria. If the property is leasehold, the sum of the years remaining on the lease plus the age of the youngest borrower must equal at least 160.

Voluntary partial repayments

Minimum repayment

£500 (per payment)

Each year they can repay a maximum of 10% of the amount they’ve borrowed. Up to four repayments can be made each year. Repayments can only be made after the policy has been held for one year and if there has been no additional borrowing in the previous 12 months. The payment will be applied to the mortgage on the day it is received and the amount on which we charge compound interest will reduce.

This is a voluntary option. Please note that if your client makes a voluntary partial repayment they can't take any additional borrowing or release funds from their cash reserve until 12 months after the date of repayment.

This is only available to customers who applied for their lifetime mortgage on or after the 28th April 2014

Maximum repayment

10% of the overall loan value

Early repayment charges

Minimum ERC

no payment

Clients may face an early repayment charge if they wish to repay the loan in full before they die or move into long term care. The amount charged will apply to each amount the client has borrowed. There are situations where an early repayment charge will not apply, for more information see our terms and conditions.

No early repayment charge on first death only applies to customers who applied for their lifetime mortgage on or after the 28th April 2014

Maximum ERC

25% of each amount borrowed

A quick guide to key charges

Type of charge Details Notes


- Calculated on a daily basis and compounded annually

Arrangement fee

Will be provided in the Key Features Illustration


Early repayment

- Early repayment charges may apply if the loan is fully repaid for any reason other than those stated in our exemptions list. This could be up to 25% of the loan value including any additional borrowing or cash reserve releases. There may also be an administration fee - for full details please see the Tariff of charges

Legal fees

- Your client is responsible for paying their own legal fees. Aviva's legal costs and any disbursements are covered by the arrangement fee. Full details of these costs can be found in the Tariff of charges
Commission 2.25% of the initial loan plus 0.75% of the reserve -
Type of charge Estimated property value Valuation fee
Valuation fee

£75,000 to £150,000


£150,001 to £300,000


£300,001 to £500,000


£500,001 to £750,000


£750,001 to £1,000,000


£1,000,001 to £1,100,000


£1,100,001 to £1,200,000


£1,200,001 to £1,500,000


£1,500,001 to £2,000,000


Over £2,000,00

Please contact your usual Aviva contact to find out more.

Re-valuation fee If your clients application takes longer than six months to process we will require another property valuation. These charges can be seen in our Tariff of Charges booklet.
Re-inspection fee  £60 - If the home needs to be re-inspected; for example after essential repairs have been carried out  
Additional borrowing Please refer to our Additional borrowing brochure and Tariff of charges for applications on or after 28th April 2014

  You can rely on us to offer you reliable support on Lifestyle Flexible Option

Start by reading our Build your business with equity release guide for help with this market.

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:
020 8989 8464*
Fax:020 8530 3052

*Calls may be monitored and/or recorded

Our retirement support team can help you with:

  • Quotes 
  • Literature 
  • Sales ideas 
  • Management of new business issues 
  • Full sales support function on-site

They’ll also be pleased to send you an agency request form.

Contact your usual Aviva contact, or see our equity release contact page for more information.

 It's been designed for clients who:

  • Are homeowners aged 55 or over who need to raise capital
  • Have no mortgage or only a small mortgage on their property. This mortgage must be repaid by the proceeds of the loan
  • Have a minimum property value of £75,000
  • Need to borrow at least £15,000 (the minimum available under our lending criteria)
  • Require a fixed rate of interest throughout the term of the lifetime mortgage
  • Live in the UK (except the Channel Islands or the Isle of Man)

It’s unlikely to be suitable for clients who:

  • Have savings or other money they could use first
  • Prefer to sell all or part of their home rather than take a loan
  • Already have a large mortgage or loan outstanding on their property
  • Would prefer to sell the property and downsize

What does your client need to think about?

  • Involvement of their family in the decision
  • Impact on their state and welfare benefits
  • Impact on their tax position
  • Impact on any inheritance they may leave
  • If they are prepared to commit to this for life as potential early repayment charges could be expensive
  • If a couple, whether both parties understand the commitment
  • The costs involved, particularly the build up of interest throughout the life of the mortgage

Possible alternatives:

  • Sell or use other assets
  • Take a standard secured or unsecured loan, if they can afford repayments
  • Sell their home and downsize
  • Adjust their standard of living
  • Move in with children
  • Borrow money from family
  • Sell part or all of their home using a home reversion plan
  • Local authority or other type of grant

Contact us

You can find contact details for each product area in the drop-down list:

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WA11003 06/2017