An Insight About Aviva Equity Release Products

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Equity release is the method of taking out cash for the worth of your house and converting it into tax-free cash. It is a long-time loan which is repaid utilizing your home when you need cash for the long term.  Equity release is designed in such a way that you can take the money as a lump sum or in smaller amounts, to convert your dreams into reality. The money can be used for different purposes like renovate your home, go for a dream vacation or help your children.

Kinds of lifetime mortgages:

Aviva offers the best kind of equity release product known as a lifetime mortgage. Aviva equity release is the method of estimating the value of your house and take cash to utilize it according to your needs.  There are two kinds of lifetime mortgage choices:

• Lifestyle flexible option: The individual can borrow a lump sum amount and create a cash reserve to draw money when they require it. The individual has to pay interest only for the amount that they have withdrawn from the cash reserve.
• Lifestyle lump sum max: In this type, the individual can borrow a lump sum cash to use for a particular purpose like helping their child, topping up their retirement income, etc.

Related: 10 Money Principles That Work For All Generations

How to determine whether you are eligible for Aviva Equity Release?

Aviva Equity Release is not suitable for all and for all homes. It mostly depends on you and your situation. An individual could be an eligible person if:

• They are homeowners and aged 55 or more: If individuals are living together, married or in a civil relationship, they both should be 55 years or more.
• They reside permanently in their house: Their house property should be their main residence. It should not remain unoccupied for 6 months or more at any time.
• The property is located in the UK: For maisonettes and flats, they utilize about 85% of the total estimation to find out how much the individual can borrow. There are some lending criteria which is discussed here and it aids the borrowers to decide about equity release.
• The individual has plans to borrow a minimum of £15,000 and the property’s value should be appropriate to this.

Why you should consider Aviva Equity Release?

• Fund leisure interests, visiting relatives abroad, a holiday or a new car
• Paying off a long-time outstanding mortgage
• Manage your wealth, estate and tax scheduling and leave an active inheritance
• Help grandchildren and children with weddings, house deposits or various major events
• Refurnish or renovate parts of your house
• Enhance your retirement income
• Adapt your home to live independently
• Get ongoing assistance at home or pay private medical bills

The lifetime loan is not designed to be repaid in full before the individual and their partner move permanently to long term care or pass away. If they need, they can make partial payments after using the loan for about a year.  Entering into an equity release is a big decision to take, so understand the pros and cons and decide wisely.