Your guide to Aviva equity release

What’s missing from the Aviva equity release product range?

It may be of interest to know that the Aviva equity release product range doesn’t include an interest-only lifetime mortgage. This type of equity release lets you make voluntary monthly interest payments on your loan. Paying the full interest each month means the amount owed won’t increase over time, unlike Aviva’s lifetime mortgages where the interest is added to the loan and builds up on a compound basis.

An interest-only plan can protect more of your loved ones’ inheritance, which is why many people who can afford to make interest payments choose this type of lifetime mortgage. It means that more of your home’s value will be available after the loan is repaid when you pass away or move into long-term care.

Also, Aviva equity release doesn’t include home reversion plans. This is an alternative to a lifetime mortgage where you sell all or part of your home in exchange for a tax-free cash lump sum or income. You can then remain in your home rent-free for the rest of your life or until you move into long-term care. It’s a fairly uncommon option, but one that may be suitable – and our selected advisers can see if it’s right for you.

To look at your options beyond Aviva, please get in touch with us. Our selected advisers bring you access to the best deals from leading equity release providers. To find out how much you can release, check here or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back. 

How much equity can I release with Aviva?

As with other providers, Aviva equity release loan amounts depend on the age of the youngest homeowner, and Aviva are like many other providers in that borrowers must be 55 or over. The older you are, the more you can borrow.

The value of your property will also be relevant. Aviva don’t publish a minimum and maximum figure but release levels across providers typically range from 5% to 50% of the property’s value. Aviva typically arrange for a valuer to look at your house before moving forward with your application. You can of course estimate your property’s value as a basis for an estimate of how much you can borrow.

Your health and lifestyle can also be taken into account. With Aviva’s Lifestyle Flexible product, you may get a lower interest rate if you live with certain medical conditions or lifestyle factors. With Aviva’s Lifestyle Lump Sum product, these may qualify you for a lower interest rate or a higher release level.

It’s also worth mentioning that with Aviva equity release, the minimum amount you can release is £15,000. With some other lenders, the minimum is £10,000. This may be something to remember if you are looking to limit your borrowing through equity release as much as possible.

To find out how much you could borrow, but without limiting yourself to Aviva, use our free equity release calculator or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.

Can I get equity release direct from Aviva?

Aviva don’t offer equity release products directly to consumers. Instead, they refer customers to financial advisers who advise exclusively on Aviva equity release plans. In effect, you’ll be dealing with an Aviva equity release adviser and you won’t have access to the best quotes and deals from other UK equity release providers.

With Equity Release Wise however, our selected financial advisers have access to leading equity release providers. This means that you could benefit from the latest products, features, deals and interest rates from multiple providers – and won’t be tied down to an Aviva equity release adviser offering only Aviva lifetime mortgages.

What happens when you use an Aviva equity release calculator?

The same principle applies if you go down the route of using an Aviva equity release calculator. You could use the equity release calculator Aviva features on their website, but it will not lead to a review of what plans are available from other leading providers.

By talking to our selected advisers, you will gain access to equity release plans from a number of leading providers. This will give you more choice than simply relying on the equity release calculator Aviva offers.

Also, as with all online calculators, the Aviva equity release calculator won’t give you a totally accurate indication of how much cash you can release. The actual amount you can release will be based on more extensive information about you and your property. Our selected advisers can talk this through with you, and then obtain accurate quotes for you to compare. 

Do I need equity release advice?

In order to decide which provider and plan is right for your equity release needs, we recommend that you speak with a specialist equity release adviser. Equity release is a complicated product and is not for everyone. There may be better ways you can meet your financial needs, so advice to understand all your options is important.

In fact, the Financial Conduct Authority (FCA) Handbook is very clear about the need for advice. It states that firms should only work on an ‘execution only’ basis without advice where the client rejects the offer of advice, can identify which product they want, and accepts that they will not be protected by the FCA’s rules and standards for advisers.

We support the FCA’s stance on advice. Equity release is not for everyone, and our selected advisers will help make sure you are making fully informed decisions. What’s more, unlike an Aviva equity release adviser, our selected advisers will obtain quotes from a variety of providers. Call us on 0808 178 3055 or request a call back and we will arrange an appointment for you.