Aviva unveils Lifestyle Flexible Advantage ER product – Mortgage Technique

Aviva has introduced the launch of its new Lifestyle Flexible Advantage Equity Release product, changing the present Lifestyle Flexible Option.

The new product incorporates a voluntary partial reimbursement (VPR) function which, Aviva claims, is exclusive available in the market. This function implies that prospects making VPRs to repay curiosity may even obtain a bonus uplift, funded by Aviva.

Customers are rewarded with the uplift in direction of paying the curiosity on each VPR they make, whether or not it’s a one-off or common. The interest-servicing uplift proportion charge is about on the outset of the approach to life mortgage and is retained at that degree all through. If prospects pay again greater than the curiosity due within the present yr, the extra quantity that they pay goes in direction of paying off the interest-bearing stability.

However, this extra quantity doesn’t get the uplift. Making VPRs is totally elective and versatile. Customers can begin, cease or change their repayments at any time, to swimsuit their wants. They do not need to commit to creating common funds, but when their circumstances permit it, this selection is open to them.

Aviva Equity Release head of distribution Kay Westgarth mentioned: “We believe this is truly market-leading and offers the maximum flexibility to customers choosing to make VPRs, meaning they are in control of their borrowing.”

She concluded: “This feature adds much-valued flexibility to our equity release products. We have also developed a projection tool that advisers can use with their clients as they go through the advice process, so they can create scenarios to help customers understand their options.”