- Downsizing protection will offer no Early Repayment Charge if customers move to a non-qualifying property.
- Changes to lending criteria for commercial use and letting will widen accessibility to lifetime mortgages.
- Larger loans available on higher value properties.
- Faster application process for advisers.
Aviva has announced significant enhancements to its lifetime mortgage proposition, making this increasingly popular form of funding in later life more accessible to a wider range of customers.
These new enhancements, which come into effect from 8 April 2019, include:
Customers will be able to redeem their loan in full without the application of an Early Repayment Charge, if they need to move to a new property that does not meet Aviva’s lending criteria (subject to Terms and Conditions). Customers will benefit from the guarantee three years after taking out a lifetime mortgage product with Aviva, compared with a five-year waiting period more typically available in the market.
Changes to lending criteria
Aviva has extended its lending criteria and 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, which are often more complex to process. Aviva has significant expertise in this area through in-house RICS qualified surveyors and our expert panel of surveyors.
Specialist teams will consider loans of up to £10m.
Simpler processes for advisers
In conjunction with these product changes, Aviva has simplified the application process , making 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.
69% over-45 homeowners said their property is worth more than their pensions, savings and investments combined.
“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 (Real Retirement Report Q2 2016). 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.”
*Provided the space represents less than 50% of the total property, and is also covered under suitable agreements. In addition, applications from customers who use their property for a limited amount of personal commercial use, or who use their land for this purpose (subject to T&Cs) will also be considered.
Full details of these changes are contained in the ‘Terms and Conditions of the Aviva lifetime mortgage - Edition 5’ (PF011433)
07800 692 087
Notes to editors:
- For information on how Aviva is helping our people, customers and communities impacted by COVID-19 visit: www.aviva.com/covid-19-our-response/
- We exist to be with people when it really matters, throughout their lives – to help them make the most of life. We have been taking care of people for more than 320 years, in line with our purpose of being ‘with you today, for a better tomorrow’.
- In 2019, we paid £33.2 billion in claims and benefits on behalf of our 33.4 million customers.
- Aviva is invested in our people, our customers, our communities and our planet. We were the first international insurer to go operationally carbon neutral in 2006, we have invested £6bn in green assets since 2015 and we are a member of the UN Net Zero Asset Owner Alliance.
- Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at www.aviva.com/social-purpose
- We will focus on the UK, Ireland and Canada where we have leading market positions and significant potential. We will invest for growth in these markets. Our international businesses in Europe and Asia will be managed for long-term shareholder value. We will also transform our performance and improve our efficiency. Our transformation will be underpinned by managing our balance sheet prudently, reducing debt and increasing our financial resilience.
- Total group assets under management at Aviva group are £522 billion (HY20) and our Solvency II capital surplus is £11.8 billion (Q320). Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, latest B-Roll, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on:
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
- We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.