Aviva Lifestyle Flexible Enhanced - Cashback £1000
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Aviva Lifestyle Flexible Enhanced - Cashback £1000 Review
Lifestyle Flexible Enhanced – Cashback £1000 Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 3.02% | 3.20% |
Scheme Incentives
- Free Valuation
- Cashback
Scheme Offers
- Inheritance Guarantee
- 10%pa Voluntary Partial Repayments
- 3-year No Early Repayment Charge**
- Bespoke Interest Rates***
I think you’ll agree with me when I say:
It’s REALLY hard to choose the best equity release scheme with all the choices available.
Or is it?
Is the Aviva Lifestyle Flexible Enhanced - Cashback £1000, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.
As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.
- We'll provide detailed information about the Lifestyle Flexible Enhanced - Cashback £1000 scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Lifestyle Flexible Enhanced - Cashback £1000 product.
What’s Equity Release?
An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.
Learn More: What’s Equity Release?
How Does Equity Release Work?
Equity release is available for individuals or couples over the age of 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.
Learn More: How Does Equity Release Work?
We’ve summed up the most important information about the topic in this quick video.
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Most popular reasons for releasing equity
- Boosting retirement income.
- Paying off credit debts or loans.
- Gifting money to family. (E.g. To help children pay a deposit on their first house)
- Taking a trip of a lifetime.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are Aviva?
Scheme Background
Aviva is the rebranded name of Norwich Union and is one of the longest serving providers of equity release plans today. Aviva Equity Release have arranged lifetime mortgages to over 198,000 homeowners since inception in 1998 and in doing so have provided £7billion in released equity.
Aviva provide a range of flexible drawdown lifetime mortgage plans and high maximum lump sum plans with the ability to also take health and lifestyle into consideration. Added to this Aviva Equity Release also provide balance control measures with their flexible 10% partial repayment facility. With the largest brand name in the equity release industry, Aviva have become synonymous with a name you can trust.
Eligibility & Requirements
The Aviva Lifestyle Enhanced Drawdown Lifetime Mortgage Plan is designed for homeowners who are looking for the lowest equity release interest rates, combined with the flexibility of a lifetime mortgage drawdown scheme.
Additionally these homeowners might also want to take advantage of any poor health to obtain a higher-than-average equity release lump sum.
Minimum Property Valuation
This Aviva Enhanced Drawdown Lifetime Mortgage plan requires a minimum property valuation of £75,000 and has no maximum.
Property Location Requirements
The property must be a primary residence and must be located in England, Wales, or Scotland.
Aviva is also one of only a few lenders that operate in Northern Ireland.
Only 85% of a flat’s current market value will be taken into account by Aviva.
Single vs Joint
The Aviva Enhanced Lifetime Mortgage is available as a single or joint life mortgage, with a minimum age of 55 for the youngest homeowner, and no maximum age limit.
Minimum Release
On the Aviva Impaired Life plan, the minimum equity release is £10,000, with a £5,000 mandatory minimum reserve facility if chosen.
The smallest loan amount increases to £15,000 if no drawdown facility and an outright single maximum lump sum demand are chosen.
Scheme Features
The Aviva Lifestyle Ill-health plan is a lifetime mortgage with improved drawdown that offers a tax-free lump sum cash release for immediate usage, with any remaining funds held in a cash reserve facility. This is great for those who need quick cash but want to be able to increase their drawdown amount in the future. It also has one of the lowest equity release interest rates available.
The cash reserve facility’s minimum withdrawal amount is only £2,000, with no additional administration fees for any additional withdrawal amounts.
Valuation Features
Aviva offers a free valuation of up to £1 million, as well as a fixed equity release lifetime interest rate on the initial lump sum.
Any subsequent withdrawals would be subject to the interest rate in effect at the time of withdrawal.
Early Repayment Feature
Equity Release Council Status
Aviva is a member of the Equity Release Council (ECR). All of their plans are guaranteed to have no-negative equity. As a result, if the property is eventually sold, any beneficiaries cannot be left with a debt to the equity release provider.
Joint Application Features
In the case of joint applications, there is an added protection element for the plan’s last survivor.
So, if one of the homeowners dies or moves into care, the surviving partner has the option to repay the lifetime mortgage to Aviva without penalty within 3 years of the event.
Scheme Options
Aviva’s Lifestyle Enhanced Lifetime Mortgage plan allows homeowners to spend their tax-free money anyway they like without having to make any payments. The Voluntary Partial Repayment Option, however, is a provision of the Aviva Equity Release plan that allows the homeowner to begin making up to 10% annual repayments of the initial loan amount without penalty.
It also includes enhanced provisions that determine the maximum lump sum based on the homeowners’ health circumstances. If ill health can be demonstrated, more favourable terms can be offered, such as a lower equity release interest rate than their regular ones.
Based on the exact lifestyle options selected, the equity release interest rate mentioned above is the lowest rate available under this plan.
Repayment Options
Aviva does not impose a restriction on the number of repayments that can be made in a 12-month period, as long as the 10% maximum is not exceeded.
This in turn aids in managing the future balance of the UK lifetime mortgage program. Either by reducing the interest roll-up effect, paying off only the interest, or even reducing the future balance by using the maximum 10% limit.
Inheritance Protection
The Inheritance Protection feature is another possibility for inclusion, which allows the homeowner to secure a specified percentage of the property’s final sale value. This is crucial for individuals who want to ensure a certain amount of the house’s value from their inheritance.
Application Fees
Homeowners have the option of accepting or declining the free valuation offer.
If the valuation is paid upfront, the equity release rate of interest on Aviva’s plans will be reduced. As a result, the choice of cashback options and valuation could have an impact on the equity release terms offered. These can be tailored to meet the needs of the homeowner.
Cashback Options
Aviva’s Lifestyle Options include a variety of cashback options for homeowners to choose from. The amounts are £0, £500, and £1000.
All cashback alternatives have an impact on Aviva’s lifetime mortgage interest rate. The above rate includes a £1000 cashback.
Footnotes
*£5 reduced application fee until further notice
***Rates dependent upon personal criteria such age, health, loan amount & property details
Aviva's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
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Have a look at all the equity release schemes available on the market, with our easy-to-use table or compare interest rates on equity release!
Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
HOW MUCH EQUITY CAN YOU RELEASE?
Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
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