Equity Release Lifestyle Flexible product - FAQs
Reduction in minimum cash reserve drawdown and individual pricing of drawdown interest rates FAQs
How does the customer access their reserve?
- If a customer wishes to access their reserve, they can call 0800 158 4177
After requesting access to their reserve how quickly can a customer expect it to receive it?
- Payments up to £250,000 are made within 2 hours (same day) if the customer calls before 3pm, otherwise the payment will be made the next working day. Payments over this amount are payable by Telegraphic Transfer and are typically paid before 5pm that day if authorised by Aviva before 2.30pm
Can advisers access the reserve interest rate(s) a customer may pay before they request it, or access an example when the advice process is being worked through?
- We are unable to provide advisers with reserve interest rates as these will be calculated when requested by the customer and is guaranteed from the date the request is made
Is there a guaranteed period on the reserve interest rate?
- The rate is guaranteed on the day provided only. This is usually the same day the reserve is instructed and paid or where a customer instructs for the payment to be made up to 10 working days in the future with the rate guaranteed
Is there a limit on the number of times a customer can access their cash reserve drawdown?
- No, there is no limit on how often a customer can access their reserve
What is the minimum amount of money a customer can access each time from their reserve?
- The minimum draw amount is £500, unless the remaining cash reserve is less, in which case all of the remaining reserve must be taken
Has the amount of cash reserve that can be applied for at outset / when applying for additional borrowing changed?
- No, the amount of minimum cash reserve that can be applied for remains £5000
What is taken into account when a reserve interest rate is calculated?
- There are a number of factors that will contribute to the overall interest rate. The clients age, changes to house prices, prevailing market conditions, our latest view of risk, the loan outstanding and any health and lifestyle information that affected the terms available on the original loan
Will you continue to publish a drawdown interest rate as part of reprice communications?
- No, we will no longer publish a reserve interest rate as customers will receive individually tailored rates
Will the reserve interest rate take into account any new medical conditions which have arisen since the original loan was taken?
- We will take into account the Health & Lifestyle details that applied to the original loan where qualifying medical enhancements were applied to the policy. We are unable to take into account changes to that information
How do I ensure my clients receive the best interest rate possible throughout the lifetime of their contract?
- It remains important to consider what size of drawdown reserve is appropriate to recommend for an individual customer as well as other factors that could affect the interest rate such as Cash back. With this change it is also important that health and lifestyle is explored in detail for each and every customer as this could affect both the new business contract terms and the reserve interest rate in the future. This change is extending the principles that we already apply in tailoring rates for customers.