Talking to your family about equity release

If you’re considering equity release, it’s a good idea to talk to a financial adviser about it first. They’ll be able to look at your overall financial situation and talk through the pros and cons of equity release for you specifically, as well as answering any questions you might have.

It’s important to know that equity release doesn’t suit everyone, so your adviser will be able to tell you if it’s right for you or not.

Once you know all the pros and cons for your particular situation, you should talk them through with your family, so all of you understand how a lifetime mortgage works. It’s a big decision that’ll impact them too, so it’s useful for everyone to be on the same page.

You will need to obtain financial advice prior to proceeding with equity release. If you don't already have a financial adviser, give us a call on 0800 141 3493. Your call will be answered by our financial advisers who we've handpicked to give you all the information and advice you'll need about our Aviva lifetime mortgage product.

You can also choose your own independent financial adviser if you want to, and they’ll be able to help you decide whether or not you want to apply for equity release. It's important to consider the benefits, costs and risks before deciding whether a lifetime mortgage/equity release is right for you.

Releasing equity from your home by taking out a lifetime mortgage will always reduce the amount of money you’ll leave behind. But if you want to, you can save a percentage of your home’s sale price to leave as an inheritance. We call this an inheritance guarantee, and it means a percentage of the sale price will be paid to you or someone you love if you go into long-term care, or paid to your estate when you die, subject to our terms and conditions.

Once your home has been sold for the best market price, the inheritance will be paid out. All you have to do is tell us the percentage of your property value that you want to guarantee. You’ll need to do this when you apply for your lifetime mortgage, as you won’t be able to add it later.

If you choose to have an inheritance guarantee, it’ll reduce the amount of money you can borrow, and is subject to minimum loan amounts. If you want to know more about how this is calculated, it’s a good idea to speak to your financial adviser or contact us. An inheritance guarantee could also increase the interest rate on your lifetime mortgage.

It’s important to note that we won’t be able to apply your inheritance guarantee if you don’t stick to the terms and conditions of your lifetime mortgage, or if you decide to repay your lifetime mortgage early.

If you’re taking out a lifetime mortgage product, it’s a good idea to check if your provider is part of the Equity Release Council first. If they’re a member, they’ll need to provide a ‘no negative equity’ guarantee, which protects your family or loved ones and can make sure they won’t inherit any debt at all. You'll never have to repay more than the money received from the sale of your property, provided that it is sold for the best price reasonably obtainable. If your provider isn't a member, you might not get a guarantee.

It’s also important to remember that your family might have been expecting an inheritance. When you die and your house is sold, it might be enough to pay off the loan and interest but without much left over, and this might be disappointing for your family.

Saying yes to equity release is a big decision, but ultimately it’s up to you to decide if you think it’s right for you.

If you’d rather make a decision without talking to your family, that’s fine too. It’s your home, so it’s up to you – but you’ll need to get in touch with a financial adviser so they can check if a lifetime mortgage is right for you.