Lifestyle Flexible Advantage rewards borrowers for making repayments
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Aviva has introduced a new equity release product, Lifestyle Flexible Advantage, which provides borrowers with a financial boost when they make voluntary partial repayments.
The new lifetime mortgage plan is designed to encourage customers to reduce their loan balance over time. Each time a borrower makes a voluntary repayment – whether it’s a regular or one-off payment – Aviva will contribute an additional ‘bonus uplift’ to help cover the interest on the loan.
The result is that less money will need to be repaid from the sale of the borrower’s home when they pass away or move into long-term care.
Customers can make repayments as and when they wish, with no obligation to commit to a repayment schedule. This flexibility allows borrowers to adapt their payments to suit changing financial circumstances.
Kay Westgarth, head of distribution at Aviva Equity Release, said: “We are delighted to be announcing the launch of this new feature, which will be applicable on all new Lifestyle Flexible Advantage products from today.
“We believe this is truly market-leading and offers the maximum flexibility to customers choosing to make voluntary partial repayments, meaning they are in control of their borrowing.
“We are continually looking at how we can develop our products to meet customer needs, based on feedback, and believe that this is an important forward step in the market.”
Other main features of Lifestyle Flexible Advantage include:
- Customers can release equity as a lump sum or an initial lump sum followed by drawdown withdrawals from a cash reserve as and when they wish.
- Minimum lump sum release of £15,000.
- Minimum lump sum release of £10,000 when followed by drawdown withdrawals.
- Repay up to 10% of the amount borrowed annually with no early repayment charge.
- There is no limit to the number of repayments, but each one must be at least £50.
- Available from age 55 with no upper age limit.
- Online access to policy details 24/7.
- Downsizing protection – if you move to a property that doesn’t meet Aviva’s lending criteria and repay your lifetime mortgage in full, there is no early repayment charge (after three years).
