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Quick Summary
- Over 55 and eyeing equity release? Aviva's tools and tips aim to safeguard your home equity while setting up your retirement finances, with rates that hover between 6.14% to 6.46%*.
- Aviva's got retirement planning and advice tailored to keep your finances robust, covering pensions and annuities that can give you a steady income without having to touch your home's equity.
- Aviva's investment products, including ISAs, could help grow your savings over time, offering a savvy alternative to dipping into home equity.
Are you one of the many retirees wondering if Aviva Equity Release can help you during your golden years?
Given that over 557,000 plans were taken out between 2000 and 2022, with some of those by Aviva, you may wonder just what Aviva can offer you.1
What does the company offer and how does it compare to other equity release companies?
In This Article, You Will Discover:
Our team has reviewed the company’s offerings, reputation, and alternative products, condensing it into an easy-to-read format, to help you on your financial journey in retirement.
Let us get started.
NB: Fundweb is an unrelated and independent 3rd-party provider, and the information provided in this article reflects the opinions of Fundweb only and may not represent the views of Aviva. This article should not be construed as advice or as a solicitation to participate in any financial product offered by Aviva.
What Is Equity Release?
In essence, equity release is a financial option for individuals over 65 to convert the value of their property into tangible financial resources.
What Are the Reviews Saying About Aviva Equity Release?
Reviews on Aviva Equity Release highlight its competitive interest rates and flexibility.
Users appreciate the ability to manage their loan online, the possibility to make optional repayments, and the general transparency of the process.
Furthermore, Aviva's excellent customer service receives commendation, with clients emphasizing the friendliness, responsiveness, and overall professionalism of its team.
However, some reviewers have expressed dissatisfaction with slow processing times and the stringent eligibility criteria.
While most customers seem to have a positive experience, these minor drawbacks are worth considering.
Overall, Aviva's Equity Release product receives substantial praise, confirming its position as a leading provider in this sector.
Who Is Aviva?
Established as a composite insurer, Aviva operates through specialised units that offer various insurance services.
These include but are not limited to:
- Car insurance
- Home insurance
- Health insurance
- Pensions
- Investments
- Asset management
Having been operational for over 320 years, Aviva is the UK's leading life insurance entity, playing a significant role in the pensions and mortgage sectors.
The company, headquartered in London, caters to approximately 18 million clients across the UK, Ireland, and Canada.
Aviva Equity Release
Aviva has positioned itself as a prominent figure in the UK equity release sector.
Its services and products are regulated by both the Financial Conduct Authority (FCA)2 and it is a member of the the Equity Release Council (ERC),3 ensuring a high standard of client protection.
Learn More: Equity Release Council Rules
What Is Aviva's Equity Release Offering?
Aviva primarily offers a lifetime mortgage scheme, available in 2 variants, namely a lump sum and a drawdown product.
What Are The Features of Aviva’s Schemes?
Aviva's lifetime mortgage scheme offers flexibility tailored to the essential needs of the clients.
Features include:
- Special rates for certain health and lifestyle conditions
- Maintenance of homeownership
- Options for lump sum and reserve cash access
- Provisions for penalty-free repayments
- 24/7 online policy review
- Downsize protection after 3 years
- No interest on unused drawdown funds
- A No Negative Equity Guarantee
- Potential to secure a portion of the inheritance
- Possibility of home transfer, subject to conditions
What Is the Eligibility Criteria for Aviva's Equity Release?
This equity release company's potential clients should consider:
- Being homeowners aged 55 or above
- Property valuation of at least £75,000
- Property situated within the UK with the exception of the Channel Islands and the Isle of Man
- Varied loan amounts based on several criteria
What Are The Associated Costs?
Clients should be aware of the following potential costs:
- Daily calculated, annually compounded interest
- Arrangement fees
- Early repayment charges, with specific conditions
- Personal legal fees
- Commission on particular options
- Revaluation and re-inspection fees
- Charges for additional borrowing
- Valuation fees, with some exceptions
Equity Release Calculator by Aviva
Aviva provides a calculator⁴ to help estimate the potential equity a client may access through their lifetime mortgage.
Additionally, you can try our free equity release calculator to obtain an estimate of how much you could unlock from your property.
Advantages and Limitations of Aviva's Equity Release
Like all financial plans and companies, there will always be positive and negative considerations that are best to be aware of.
Take a look at these.
Pros
The pros of releasing equity through Aviva includes:
- Health condition-based enhanced rates
- No Negative Equity Guarantee
- Option to partially protect inheritance
- Access to tax-free cash
Cons
You must also work to navigate these potential disadvantages:
- Set minimum property value
- Potential reduction in estate value due to loan
- Costs related to unlocking property value
- Possible impact on certain benefits.
How Did We Review Aviva?
We reviewed Aviva based on the following:
- Years in Business and History: Assessing the company's longevity and track record. Exploring customer reviews and industry accolades received over the years.
- Financial Stability: Ensuring the company is financially robust and capable of meeting long-term commitments.
- Product Range and Flexibility: Favouring companies that offer a diverse range of schemes with enhanced product flexibility.
- Transparency in Interest Rates and Fees: Evaluating competitive interest rates compared to industry standards. Ensuring full transparency in disclosing rates and fees without hidden costs.
- Customer Support and Service: Examining the availability of customer support, including response times. Access to online educational resources and tools, such as calculators.
- Code of Conduct and Compliance: Selecting companies that adhere to recognised industry standards and ethical codes.
- Industry Reputation and Peer Reviews: Considering the company's standing in the industry and its reputation among peers.
- Innovation and Technology: Assessing whether the company offers a streamlined, digital application process for convenience.
- Client Testimonials and Resolution Process: Reviewing success stories from satisfied clients. Examining the effectiveness of the complaints resolution process.
Client Feedback on Aviva
Aviva has mixed feedback from clients, but overall, it has a good reputation for being a leading financial institution in the UK.
Ratings are as follows:
Recognition in the form of awards further accentuates Aviva's commitment to service quality.
These include:
- 'Best equity release lender’ for 2021/2022 - Personal Finance Awards.
- 'Best Provider for Products and Best Overall Provider for Lifetime Mortgages’ - 2023 Mortgage Solutions 2023 Equity Release Awards.
- 'Best equity release lender customer service’ - the What Mortgage Awards in 2022
- 'Best equity release lender’ - the What Mortgage Awards in 2022.
Aviva Complaints
Should you find Aviva's service unsatisfactory, feel free to voice your concerns either by phone or by filling out the provided complaint form available on its company website.6
Regulatory Information
Aviva’s equity release section (Aviva Equity Release UK Limited) is a member of the Equity Release Council and is regulated by the Financial Conduct Authority.
Being regulated by the FCA means that Aviva is required by law to follow certain processes and procedures with regards to the process of unlocking equity that are specifically designed to protect the borrower.
Registration Numbers:
Common Questions
Is Aviva Equity Release a Good Option for Retirement
What Are the Pros and Cons of Aviva Equity Release
How Does Aviva Equity Release Compare to Other Companies
What Are the Customer Experiences with Aviva Equity Release
What Are the Key Features of Aviva Equity Release
What Is the Difference Between Aviva’s Lifetime Mortgage and a Standard Mortgage
How Does Aviva Ensure the Privacy and Security of My Personal Information During the Equity Release Process
Is It Possible to Move Homes After Taking Out an Equity Release Plan With Aviva
How Quickly Can I Expect Funds to Be Released Once My Aviva Equity Release Application Is Approved
How Will Releasing Equity Through Aviva Potentially Affect My State Benefits
Conclusion
Navigating the financial landscape of equity release can be intricate, but providers like Aviva offer robust and tailored solutions to suit various needs.
If you are considering tapping into your home's equity, now may be the time to take a closer look at what Aviva offers.
Speak to a financial advisor today to explore your options and make an informed decision.
As the dynamics of retirement and financial planning continue to evolve, the importance of understanding products like the Aviva Equity Release can not be overstated.