If you are a homeowner aged over 55 and are looking to raise some funds to secure your retirement or to do the things you have always dream of in life. You may be asking yourself what is an Aviva Equity Release mortgage and if you are eligible to release equity from your home, after all your home is probably the most expensive item you possess and could have greatly increased in value since you purchased it.
Key Facts about releasing equity from your home:
- Release equity from your home without having to sell up or move.
- No monthly interest payments.
- Money released from a lifetime mortgage is tax free.
How does Aviva equity release work?
With an Aviva equity release lifetime mortgage you can access some of the money tied up in your home without having to move or downsize, the property belongs to you for as long as you live there.
Although technically a mortgage it does not work in the same way as any you may have had on the property before. You don’t need to worry about making monthly interest repayments on the money you borrow instead when you die or move out the money you borrowed and any interest that has accumulated on your loan is paid off from the sale of your home, leaving you free to enjoy your life. Any money left over from the sale of your home can be passed on to your beneficiaries.
If the value of your home falls to less than the amount you borrowed, known as negative equity then you do not have to worry about leaving any costs to your beneficiaries as there is a ‘no negative equity guarantee’ this means your estate will not be charged any more than your home if sold for, even if it is for less than you borrowed.
How much could I borrow?
The loan is secured against your house so it depends on the market value of your home, using the Aviva equity release calculator you can estimate how much you might be able to access. However using the Aviva equity release calculator does not guarantee you that amount, the specific amount you can access through Aviva Equity Release will depend on a number of factors such as whether you want a single or joint lifetime mortgage, your age and how much you would like to bequeath to your beneficiaries.
Are there any costs involved?
There is an arrangement fee that needs to be paid to set up your lifetime mortgage, however if you decide to go ahead this fee can be taken into consideration and covered by the interest rate on your lifetime mortgage. You will also incur an administrative fee during your application, if you like you can pay this amount up front or there is the option to have this deducted from the amount you decide to borrow. Your solicitor may also require you to pay them a fee directly to cover your legal costs.
Is an Aviva Equity Release Mortgage right for me?
To decide if an equity release mortgage is the right way to release equity from your house it is important to consider all of your options. There are several equity release products available on the market, Aviva equity release is just one of many. To find out more about the different types of equity release and which one is right for you, simply click on the link and fill in the quick form and an equity release specialist will get back to you with free, no obligation quotes and advice.