Aviva has today announced the launch of its new 'Lifestyle Flexible Advantage' equity release product, replacing the existing Lifestyle Flexible option, with a new voluntary partial repayment (VPR) feature which is unique in the market.
The feature means that customers making VPRs to pay off interest will also receive a bonus uplift, funded by Aviva.
Customers are rewarded with the uplift towards paying the interest on every VPR they make, whether it is a one-off or regular. The interest-servicing uplift percentage rate is set at the outset of the lifestyle mortgage, and is retained at that level throughout. If customers pay back more than the interest due in the current year, the additional amount that they pay goes towards paying off the interest-bearing balance. However, this additional amount does not get the uplift.
Making VPRs is completely optional and flexible. Customers can start, stop or change their repayments at any time to suit their needs and do not have to commit to making regular payments, but if their circumstances allow it, this option is open to them. As well as contacting us to make a payment, customers are now able to make repayments by monthly direct debit, increasing the available options.
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 VPRs, meaning they are in control of their borrowing.
“This feature adds much-valued flexibility to our equity release products. We have also developed a projection tool that advisers can use with their clients as they go through the advice process, so they can create scenarios to help customers understand their options. 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.”
