These new enhancements, which will come into effect from 20th May, include a new minimum cash release and rates tailored to individual circumstances.
Customers will be able to drawdown a minimum of £500, replacing the previous minimum of £2,000. This increased flexibility means that customers aren’t obliged to borrow more than they need, if only a small amount is required.
All customers applying for flexible drawdown will be offered a rate individually tailored to them and their circumstances, ensuring a much more personalised approach to the cost of the loan. Factors, such as the customer’s health and lifestyle information disclosed for the initial loan, and changes to house value and their age, will all be taken into account
The new features will be available to both new and existing customers.
Greg Neilson, Managing Director, Equity Release, at Aviva, commented:
“I am delighted to announce these enhancements to our lifetime mortgage proposition. Along with the recently introduced enhancements to Voluntary Partial Repayments, the new minimum borrowing levels for drawdowns and the way of calculating rates for each customer individually mean we offer greater flexibility throughout the life of the product to meet the changing needs of customers.”
“We know that people’s circumstances can change, and that’s never been more true than over the past year.
"Accessing property wealth is a vital part of people’s planning for their life in retirement. We are pleased to continue to evolve a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.
“In addition, these new features will be available to all existing customers who also have a cash reserve in place, so that as many people as possible can benefit from the ability to manage their retirement income more flexibly.”
