Aviva Enhanced Lifetime Mortgage
  • Rate: 5.10%
    APR: 5.20%
    Offers: FREE valuation offer* + upto £1000 cashback + Limited period - £5 application fee** + exclusively reduced interest rates from 5.10% dependent upon personal criteria

Aviva is one of the most reputable providers in the UK and provides services to nearly 34 million customers around the world. It is the UK’s current largest insurer and provides services ranging from various insurance products all the way to investment, retirement, and saving schemes.

With is strong background in the industry, the Enhanced Lifetime Mortgage offered by Aviva has quickly become incredibly popular. This lifetime mortgage offers consumers with poor health the financial security of a potential fixed interest rate for life and can generate an additional cash lump sum to the standard Lifetime Flexi equity release plans.

The Aviva Enhanced Lifetime Mortgage plan allows for a single lump sum payment based on your health records, property and its valuation, and your age. The Aviva Enhanced Lifetime Mortgage scheme is based on the range of the already existing equity release schemes from Aviva. The enhancement of this particular product is that is also services to provide an additional lump sum of cash in excess of the lender’s typical rates if the consumer has a history of poor health.

The enhancement level is determined by the use of a health & lifestyle questionnaire which asks a series of questions which then get actuarially underwritten. At application stage Aviva will request a doctors report for confirmation of the questions answered. No medical is ever required, although a tobacco test maybe requested if any applicant is a smoker. So, for those who do not have enough cash available to them through traditional equity release may find that they are able to raise more money, tax-free, through the use of this product. Typically, the poorer the health, the higher the lump sum made available by Aviva.

The Aviva Enhanced Lifetime Mortgage starts at age 55. The minimum loan for this particular product is £10,000 and you must have a property that has a value of at least £75,000. The scheme is available in England, Wales, Northern Ireland, and Scotland and can be customized to suit your particular needs. There are add-ons that you can use in conjunction with the Enhanced Lifetime Mortgage. One of the most popular of these is the Inheritance Protection option. This protection ensures that you are able to leave something behind for your loved ones following the sale of your home. This essentially means that once your home is sold, you estate will receive a portion of the amount for which it is sold. This guarantee is contingent on the fact that your home is sold for the best and most reasonable and that the home is sold when you go into long term care or pass away. You are able to choose the percentage of your home that you would like to safeguard. Then, when the property is finally sold, the chosen percentage will be released to your estate. While choosing the protection will ultimately reduce the amount you are able to borrow, you are able to protect some portion of your asset.

The latest alteration made to the Aviva Lump Sum Max Enhanced Plan is that if the extra lump sum is not required, but the preference would be for a lower rate than otherwise, then Aviva will now calculate on this basis. Therefore, a lower rate than the standard plan can be achieved due to ill-health, thus meaning a lower balance for the beneficiaries to pay off at the end of the day.