Aviva equity release has established itself as a leading provider in the market, helping over 270,000 homeowners facilitate access to more than £10 billion in property value since 1998.¹

This powerful financial solution allows you to tap into your home’s equity without the need to sell or move, offering a potential lifeline for those seeking financial freedom in later life.

With flexible options catering to diverse individual requirements, Aviva's equity release provides a balance of security and independence for those looking to boost their financial autonomy.

Let’s dive into the key features to help you decide if Aviva’s offering is worth it...

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Aviva, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Aviva. This piece does not constitute advice, or an incitement to enter any services or products provided by Aviva.

An Overview of Aviva

Based in London, Aviva is a British multinational insurance firm that serves approximately 18 million clients primarily in the UK, Ireland, and Canada; beyond insurance offerings, it also provides equity release services. 

The firm is listed on the London Stock Exchange and is part of the FTSE 100 Index, offering an extensive portfolio of financial products ranging from general and life insurance to long-term savings.

Let's see what more there is to know:

Aviva’s Experience and Expertise in the Financial Services Industry

Aviva’s experience and expertise in the financial services industry span over 300 years, making it one of the most trusted names in the sector and boasting a legacy tracing back to 1696.² 

As the top general insurer in the UK and the 2nd-largest in Canada, its offerings extend beyond traditional insurance and pension services to include equity release products, with its expertise amplified by its strategic operations in emerging markets such as China and Southeast Asia.

The company’s deep understanding of the financial landscape, combined with a commitment to customer care, positions Aviva as a top and reliable provider.

Does Aviva Offer Equity Release?

Yes, Aviva does offer equity release, providing older homeowners and retirees with a variety of flexible plans and competitive rates—these are typically presented as the Lifestyle Flexible Option and Enhanced Lifetime Mortgage.

Here's a breakdown of each:

Lifestyle Flexible Option

The Lifestyle Flexible Option provides equity release without the necessity for regular repayments, offering flexibility to opt for either a one-time lump sum or a blend of an initial amount complemented by a cash reserve for future requirements.

Repayment is typically deferred until the homeowner enters long-term care or passes away, though homeowners can also opt to make voluntary partial repayments of up to 10% of the total loan amount each year.

With the cash reserve feature, interest is charged solely on the amounts accessed, and the rates are set at the time of each withdrawal.³ 

Enhanced Lifetime Mortgage

For individuals with specific health conditions, the Enhanced Lifetime Mortgage offers the opportunity to tap into a larger portion of their home's equity or potentially benefit from reduced interest rates.

By offering a higher loan-to-value (LTV) ratio, this plan allows borrowers to release more equity from their property than they might be able to with a standard lifetime mortgage.

What Are Aviva’s Qualification Criteria?

Aviva's qualifications criteria typically span age requirements to specific property standards, including homeowners being 55 years or older, and the property being within the UK and valued at a minimum of £75,000.

The qualifications are as follows:

• Homeowners should be aged 55 or above. For couples, the loan calculation will consider the age of the younger partner.
• The property in question should serve as your main residence, with occupancy of over 6 months annually.
• The home should be either completely paid off or have a minimal mortgage balance, which will be cleared using the equity release.
• The home's location must be within the UK and have a valuation starting from £75,000.
• The property tenure can be either freehold or leasehold.⁴

Learn About: Having a Joint Equity Release Plan

How Much Could I Borrow With Aviva Equity Release?

The amount you could borrow with Aviva equity release usually depends on multiple factors, including your age, property value, and health status. 

These elements interact to determine the loan size that best suits your needs.

For instance:

• The borrower's age determines the loan amount, with older individuals often qualifying for a larger portion of their home's value.
• Property valuation plays a crucial role, with more valuable homes typically allowing for bigger loans.
• Health and lifestyle factors can influence loan amounts, with certain health conditions potentially qualifying for more.
• Property specifications and locale matter, as some property types or areas might have specific borrowing limits or differ in loan-to-value ratios.

Consulting with a qualified equity release adviser can help you find the best deal suited to your individual circumstances; alternatively, try our free equity release calculator to get an instant estimation. 

What Fees Does Aviva Charge?

Aviva charges a range of fees for its equity release products, which typically include arrangement fees, legal fees, and valuation fees—it’s advisable to review the full fee structure before proceeding.

Additionally, the costs associated with its lifetime mortgage products fluctuate based on factors such as the chosen plan and personal circumstances, so consulting your financial adviser is imperative. 

These are the potential costs to consider:

• Arrangement fees cover expenses the provider faces while initiating the lifetime mortgage.
• Valuation fees pay for an independent assessment of your property's worth. 
• Legal fees are for hiring a legal adviser; while fees can vary, a standard procedure may cost approximately £750.
• Advice fees pertain to financial counsel. Aviva, for instance, waives this fee when you consult its preferred financial advice firm.
• Transfer fees can be levied by some providers for the fund transfer to your solicitor, but Aviva excludes this charge.

Pros and Cons of Equity Release with Aviva

The pros and cons of equity release with Aviva include features such as No Negative Equity Guarantees and downsizing protection, however, equity release will reduce the value of your estate and could affect your eligibility for means-tested benefits. 

Here is a balanced look at some key pros and cons to consider.

Advantages include: 

• You retain complete legal ownership of your residence.
• A guarantee is in place to ensure your family is not liable for more than what your property sells for, called the No Negative Equity Guarantee.
• Your situation determines the interest rates, which stay consistent.
• You have the flexibility to opt for a one-time lump sum, a cash reserve, or even make partial repayments.
• Only the funds you draw are subject to interest.
• Should you relocate, the lifetime mortgage is transferable.
• If you choose to downsize after 3 years, there is a provision to settle the mortgage without incurring an early repayment fee, known as Downsizing Protection.

Disadvantages to consider:

• The equity you release, along with the interest accrued, means your heirs might inherit less.
• Engaging in equity release can influence your tax bracket and might alter your qualifications for certain benefits.
• Your debt can rise rapidly due to the compound nature of the interest on your loan.
• It is a decision designed for the long haul, and breaking it early might result in charges.
• Qualification for equity release starts at the age of 55.
• There are set lower and upper limits to the amount you can borrow.
• Eligibility requires your property to adhere to certain standards.

With so much at stake, it is imperative to discuss all of the pros and cons with a qualified advisor or equity release broker before committing.

How to Apply

To secure a lifetime mortgage, you will go through a multi-step procedure. This includes everything from initial consultations to finalising legal documents. 

Here is a simplified guide to each phase:

• Step 1: Initiate the process by contacting the provider. They will evaluate your eligibility for a lifetime mortgage and, if qualified, set up a meeting with a financial advisor.
• Step 2: Share your intentions with your family to ensure everyone understands the implications.
• Step 3: If you choose to proceed, your advisor will help with paperwork and a home valuation will be arranged to determine the loan amount.
• Step 4: Once your application has been reviewed, you will be sent a formal quote detailing your potential borrowing amount. Discuss this with both your advisor and a legal expert.
• Step 5: After all legal aspects are addressed, the funds will be transferred to your account through your legal advisor.

What Are the Reviews Saying About Aviva Equity Release?

Reviews on Aviva equity release highlight its competitive interest rates and flexibility. Users appreciate the ability to manage their loan online, the possibility to make optional repayments, and the general transparency of the process.

Furthermore, Aviva's excellent customer service receives commendation, with clients emphasizing the friendliness, responsiveness, and overall professionalism of its team.

However, some reviewers have expressed dissatisfaction with slow processing times and the stringent eligibility criteria. While most customers seem to have a positive experience, these minor drawbacks are worth considering.

Overall, Aviva's Equity Release product receives substantial praise, confirming its position as a leading provider in this sector.

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Read on to find out what the firm has to offer.

What Do Customers Think About Aviva?

Customers have given positive feedback on Trustpilot, reflecting their satisfaction with its comprehensive product range, not just limited to equity release.⁶

Contact Aviva

You can get in touch with the provider via the following means:  

Existing customers

0808 239 4409

Monday to Friday: 9:00am - 5:00pm

Saturday and Sunday: Closed

New customers

0808 239 7502

Monday to Friday: 8:00am - 6:00pm

Saturday: 9:00am - 1:00pm

Sunday and Bank Holidays: Closed

FCA Details

The equity release sector, trading as Aviva Equity Release UK Limited, holds the registration number 310433 with the Financial Conduct Authority.⁷

How Did We Review Aviva?

Recognising the growing appeal of equity release as a vital financial strategy for retirees seeking extra income or liquidity, our review on Aviva zeroes in on the offering's terms, advantages, and constraints. 

We aim to provide clarity to prospective clients, aiding them in making informed decisions.

Common Questions

Conclusion

Aviva offers an equity release solution that is more than just a financial tool; it is about ensuring a comfortable and secure retirement. 

With bespoke interest rates, easy access to funds, and assurance against negative equity, it is positioned to address diverse retirement needs.

To optimise this opportunity and delve into the intricacies of Aviva's equity release, it is advisable to navigate your financial journey with the expertise of a seasoned financial counsellor.