Access to reserves is possible at any time, and customers can now make an unlimited number of requests for additional borrowing

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Image: Aviva announces new flexible repayment options to Equity Release . Photo: Courtesy of Aviva.

Aviva has announced significant enhancements to its lifetime mortgage proposition, making this increasingly popular form of funding in later life more flexible for all eligible customers.

These new enhancements, which come into effect from 8th November, include:

Unlimited number of voluntary repayments

Customers will be able to make an unlimited number of payments, and are able to repay up to 10% in total of their initial loan per year (and further borrowing if applicable). This means they can manage their loan amount on a day-to-day basis.

Time restrictions lifted

There are no longer any time restrictions on repayments – customers could, if wanted, make a repayment as soon as the day after completion, and further borrowing or releases is not time-constrained by any repayments made.*

Minimum payment reduced

The minimum repayment has been reduced to £50, making repayments an option in day-to-day budgeting.

Accessing reserves and additional borrowing

Access to reserves is possible at any time, and customers can now make an unlimited number of requests for additional borrowing. The minimum sum accessible from the reserve is £2,000, and the minimum for additional £5,000. Customers are able to access their reserve the day after completion via a phone call, and the reserve funds can be in their bank account the same day, or on a specific day up to 14 days in advance.

Greg Neilson, Managing Director, Retirement, at Aviva, commented:

“I am delighted to announce these enhancements to our lifetime mortgage proposition. With these new features, customers can now take advantage of increased flexibility to make managing their finances in retirement even simpler.

“In addition, these new features will be available to all customers who applied for their lifetime mortgage on or after 28th April 2014, so that as many people as possible can benefit from the ability to manage their retirement income more flexibly.

“Accessing property wealth is a vital part of people’s planning for their life in retirement, and it has never been more popular. By introducing these enhancements we are creating a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.”

Source: Company Press Release