Aviva adds flexible repayment options to equity release range

Aviva has announced a series of enhancements to the repayment criteria across its lifetime mortgage proposition.

Related topics:  Later Life
Rozi Jones
11th November 2019
Aviva
"Customers have the security of knowing that they have a more flexible range of options available to them, whether they need to repay more often than planned, or borrow more."

Borrowers can now make an unlimited number of payments and are able to repay up to 10% of their initial loan per year, while the minimum repayment has been reduced to £50.

Aviva has also removed any time restrictions on repayments and further borrowing or releases is not time-constrained by any repayments made.

Additionally, access to reserves is now possible at any time and customers can now make an unlimited number of requests for additional borrowing. The minimum sum accessible from the reserve is £2,000 and the minimum for additional borrowing is £5,000. Customers are able to access their reserve the day after completion via a phone call, and the reserve funds can be in their bank account the same day, or on a specific day up to 14 days in advance.

Greg Neilson, managing director of retirement at Aviva, commented: “I am delighted to announce these enhancements to our lifetime mortgage proposition. With these new features, customers can now take advantage of increased flexibility to make managing their finances in retirement even simpler.

“We know that people’s circumstances can change, and now customers have the security of knowing that they have a more flexible range of options available to them, whether they need to repay more often than planned, or borrow more to tide them over unforeseen events.

“In addition, these new features will be available to all customers who applied for their lifetime mortgage on or after 28th April 2014, so that as many people as possible can benefit from the ability to manage their retirement income more flexibly.

“Accessing property wealth is a vital part of people’s planning for their life in retirement, and it has never been more popular. By introducing these enhancements we are creating a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.”

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