Homeowners opting for an Aviva equity release scheme to ease their financial worries in retirement can benefit from easier terms with revamped packages from market leader provider.
The financial firm has introduced three major changes to lifetime mortgages following feedback from customers:
- Guaranteed inheritance
A guaranteed percentage of a property value will be passed to family, loved ones or an estate on death or going in to long term care
- Flexible upfront loan terms
The firm’s 75% cap on initial borrowing is removed and replaced with a flexible option to take any cash lump sum between £10,000 and 100% of the available amount. If less than 100% of the available amount is drawn down, the rest is kept in a reserve until needed.
- No draw down or redemption fees
All administration fees for drawing down from the fund reserve and redemption fees are scrapped.
Clive Bolton, ‘at retirement’ director at Aviva, said: “We understand that many people are facing financial challenges in retirement. Equity release is an increasingly important option for people approaching retirement to consider, because it allows them to unlock some of the cash from their home, which is often their largest asset.
“At Aviva equity release we offer a comprehensive range of retirement solutions, and over the last few years we’ve seen increasing demand as more customers enjoy the benefits of equity release.
“We’ve researched what customers want from our lifetime mortgage plans, and the improvements we’ve introduced will help meet their needs.”
The new products come at a time when interest in equity release is soaring as more retirees find they are struggling with finances but have valuable assets in their homes.
Ros Altmann, Saga Director General considers equity release is the natural place to look to help with a pension shortfall.
“It’s no surprise that people are increasingly relying on their house to help fund their retirement. Downsizing and releasing equity from homes is a trend that we predict is likely to continue for many years to come,” she said.
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