- 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:
- Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
- In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
- Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £331 billion in assets (as at 31 December 2018). Total group assets under management at the Aviva group are £470 billion (as at 31 December 2018).
- Aviva helps people save for the future and manage the risks of everyday life; in 2017, we paid out 98% of all our claims across all our markets and insurance products. We paid £34.6 billion in benefits and claims in 2017.
- By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
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