Learn about equity release

Your home is likely the most valuable thing you own. It's special to you, a place filled with memories. And it could be part of your financial planning.

If you're a UK homeowner aged 55 or over and your property is worth at least £75,000, you may be able to use equity release to unlock money tied up in your home, turning it into tax-free cash.

Equity release is a way of borrowing money against your home without having to make monthly repayments. The type of equity release we offer is a lifetime mortgage, it’s a long-term loan secured on your property - you stay living in your home, and you'll still own it. But it's not suitable for everyone. Whether it's right for you depends on your personal circumstances.

There are costs and charges involved, and releasing equity may affect your tax position and any entitlement to welfare benefits.

So, why should you consider it?

It's a way of increasing the amount of cash available to you. You could use that cash for things like improving or adapting your home, paying off your mortgage, having more financial breathing space, helping your family, or enjoying a more comfortable retirement.

Taking out a lifetime mortgage does mean that you will leave a lower - and possibly no inheritance from the sale of your home. But you can set aside a percentage of the value of your home to leave to the people you love - this will lower the amount you can borrow. Inheritance will still be reduced.

And our lifetime mortgage has a `no negative equity guarantee', which means your loved ones will never have to repay more than the money received from the sale of your property, as long as it's sold for the best price reasonably obtainable.

With a lifetime mortgage, interest is charged on the total amount borrowed and the interest already added, so the amount you owe goes up quickly. The loan and interest on it are usually repaid from the sale of your property when you (and your partner, if you’ve taken it out jointly) die or go into long-term care, subject to terms and conditions. You can choose to repay up to 10% of the amount borrowed each year, without paying an early repayment charge. The minimum partial repayment is £50.

Our lifetime mortgage offers an option to make interest repayments. When you pay all or part of the interest during the current policy year we add an uplift to your payment to help reduce the amount you owe faster. Your financial adviser will discuss the uplift with you.

You should think about other options, like your savings and investments or downsizing. It's also worth talking to your loved ones about your plans.

So, what next?

You will need to speak to an equity release adviser. They will give you a personalised illustration, outline the benefits, costs and risks, and help you understand if it's right for you. They will tell you if it's not suitable.

Find out more by visiting aviva.co.uk/equity-release.

Terms and conditions apply.

Call us on 0808 304 4946.