Aviva, formerly known as Norwich Union, originally offered the Aviva Lump Sum Max product which was the first of their enhanced mortgage products. This product offered the whole of the lump sum at the start of the plan without a reserve option to put aside any amount. This has now been replaced with the Aviva Enhanced Equity Release plan which has stricter criteria than other providers on the market.
The Aviva Enhanced Equity Release plan is based on life expectancy and on the value of your home. Aviva have stricter lending criteria than some of the other providers on the market as if you have a mortgage outstanding or any secured debts you will have to use the lump sum to pay off these amounts. The handy “Flex Tool” will build your mortgage around the information you enter.
There are cashback options available with the Aviva Enhanced Equity Release plan and these range from £0 – £500 – £1000 and whichever amount you choose, this option will be reflected in the interest rate offered to you. The higher amount you take on completion of the loan then the higher the interest rate will be on the term of your loan. There are additional features such as the free valuation will also reflect on the interest rates.
The Aviva Enhanced equity release plan is flexible in the size and interest rate offered to you and there is an Inheritance Protection option available to you if you would like to leave a proportion of your property to your loved ones. This will also be reflected in the interest rate on your mortgage.
How much you get depends on your health and your life expectancy. What your current health situation is will determine your life expectancy, but there will also be questions asked on any previous conditions you have suffered in the past. There are a number of conditions such as previous heart attacks and strokes and you’re likely to have medication to prevent these conditions from reoccurring.
The interest rate on the loan will vary and is built around your current circumstances. The Aviva Enhanced equity release plan is a flexible plan that offers you a number of options to suit your current personal circumstances. Talking to your family at this time too is important to cover any eventuality as you make this large decision.
The replaced plan has brought in more flexibility and is based on the client’s needs compared to the older Aviva Lump Sum Max Plan which was simply a lump sum option that offered no flexibility. The more bespoke Aviva Enhanced Equity Release product is much more flexible but bear in mind that the criteria are much tighter. Aviva will require 100% of your medical history for confirmation of any medical conditions you have detailed and there is the risk that the offer of an enhanced plan can be withdrawn if all the details are not accurate.
Aviva have stretched flexibility and their reserve option is one which can be adapted to your lifestyle. You can take the option of settling for a reduced initial loan and draw down a minimum of £2,000 as and when you need it. This option is ideal for those who don’t want an immediate cash sum or don’t have secured debts on their property. Having an income stream and ready access to the cash is all part of the flexibility that the Aviva Enhanced equity release plan offers you. This could reward you with a lower interest rate in the long-term.
