Aviva improves its equity release plans

Aviva, the market leader in equity release, is helping its customers by improving its lifetime mortgage plans. The improvements have been introduced following feedback from customers and financial advisers and include:

Introduction of an inheritance guarantee. This gives customers the peace of mind of knowing their family or estate will benefit from receiving a guaranteed proportion of the value of their property when they die or go into long-term care.

Removal of the 75% initial loan restriction.  Customers now have the flexibility of choosing how much of their loan they take upfront, from £10,000 to 100% of the available amount.  Customers who do not initially take the full amount will have an automatic reserve available, if they want funds in future.

Removal of admin fees for additional drawdown and redemption fees. Customers have the freedom of drawing down against their available reserve when they choose, without incurring an admin fee. New customers will no longer pay a redemption fee at the end of their loan.

Clive Bolton, ‘at retirement' director at Aviva said: "We understand that many people are facing financial challenges in retirement. Equity release is an increasingly important option for people approaching retirement to consider, because it allows them to unlock some of the cash from their home, which is often their largest asset.
 
"At Aviva we offer a comprehensive range of retirement solutions, and over the last few years we've seen increasing demand as more customers enjoy the benefits of equity release.

"We've researched what customers want from our lifetime mortgage plans, and the improvements we've introduced will help meet their needs. We already offer competitive rates and a no-negative-equity guarantee, and we're confident that today's improvements provide our customers with the best value in the market."

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Any inheritance the customer leaves will be reduced. Tax and welfare benefits may be affected.