"Almost seven in ten (69%) over-45 homeowners said their property is worth more than their pensions, savings and investments combined."
As part of the criteria changes, a new downsizing proection will offer no early repayment charges if customers move to a new property that does not meet Aviva’s lending criteria.
Customers will benefit from the guarantee three years after taking out a lifetime mortgage product with Aviva, compared with the standard five-year waiting period.
Additionally, Aviva will now consider lending to customers who wish to let a self-contained part of their property, or who use their property for a limited amount of commercial use.
Aviva is also introducing a new service to support applications for larger loans and higher value properties, with its specialist team considering loans of up to £10m.
In conjunction with these product changes, Aviva has simplified the application process to make it easier for advisers to complete and submit business requests, resulting in a faster offer turnaround. Aviva has also introduced a simplified, single set of product terms and conditions.
Greg Neilson, retirement managing director at Aviva, said: “I am delighted to announce these enhancements to our equity release proposition.
“For many people in retirement the value in their home will be their largest asset – our previous research has showed that almost seven in ten (69%) over-45 homeowners said their property is worth more than their pensions, savings and investments combined. Moving to a smaller house is not attractive for everyone as they may have a strong emotional attachment to their property and the memories they have there, and they do not want to leave the network of friends and family they have built up nearby.
“There are a number of wider issues facing people nowadays to which equity release can help to provide a solution, such as helping younger generations struggling to get on the housing ladder, enabling people to remain in their own home with home adaptations, or paying for care beyond that provided by the state.”
