Lifestyle Flexible Advantage FAQs

30 Oct 2025

Product Overview and Purpose

What is the Lifestyle Flexible Advantage product and what are the main features?

Lifestyle Flexible Advantage (LFA) has replaced the Lifestyle Flexible Option but retains all the core benefits of Aviva’s popular product, including:

  • A tax-free lump sum or a lump sum with a cash reserve for future drawdowns
  • No required repayments unless the customer chooses to make them.
  • Enhanced rates for customers with qualifying health or lifestyle conditions.
  • Downsizing protection, inheritance guarantees, and a no-negative-equity promise.

The product is designed for homeowners aged 55 and over who want to unlock the value in their home while maintaining control over their finances.

What’s new with Lifestyle Flexible Advantage?

LFA introduces an enhanced Voluntary Partial Repayment (VPR) feature:

  • Customers making VPRs up to the maximum cap of 10% of the original loan value will receive a bonus uplift of 10%, funded by Aviva, when the repayment goes towards paying off interest accrued in that policy year.
  • The uplift applies to every VPR made—whether one-off or regular.
  • The bonus uplift interest rate is set at the outset of the lifetime mortgage and remains fixed throughout.
  • If a customer repays more than the interest accrued in the current year, the extra amount reduces the interest-bearing balance but does not receive the uplift.
  • Making VPRs is completely optional. Customers can start, stop, or change repayments at any time.

How are repayments applied to the customer’s balance?

To ensure customers receive the uplift benefit on the interest portion of their repayment, repayments are applied in this order:

  • First, to interest built up in the current policy year on the most recent loan. The uplift is applied here
  • Next, any remaining amount will be used to pay off interest built up in the current policy year on earlier loans, starting with the most recent. The uplift is applied here
  • Finally, once all current-year interest is cleared, any leftover repayment will go toward reducing the interest-bearing balance, starting with the most recent loan. No uplift is applied to this portion.

Flexibility for customers

Lifestyle Flexible Advantage isn’t only for customers with disposable income. Repayments are completely optional:

  • Customers can start, stop, or change repayments at any time.
  • If circumstances allow, making repayments can reduce the balance and benefit from the 10% uplift funded by Aviva on the portion of the repayment that services interest accrued in the current policy year.

You can see a worked example showing how the uplift percentage is applied in our handy guide.

Why was this new product introduced?

We know there are many considerations when it comes to retirement planning. Plans change and opportunities arise, so we want to offer a plan that compliments that flexibility without any penalty for your clients. This enhancement brings convenience and control to your customers managing their lifetime mortgage.
Provided repayments remain within the VPR limits (maximum 10% of total borrowing and minimum £50 per payment), customers can enjoy this added value without being locked into a fixed repayment schedule - or losing their fixed interest rate if they stop and start repayments.

Lifestyle Flexible Advantage is a new product with its own set of terms and conditions.  As well as the uplift feature we have also altered how repayments are apportioned so that we target interest first across all loans before we repay capital.  This apportionment difference is a key part of the Lifestyle Flexible Advantage product and would require a change in terms and conditions for our existing customers.

Repayment Options and Mechanics

What is the Voluntary Partial Repayment (VPR) allowance?

The Voluntary Partial Repayment (VPR) allowance is unchanged.

Each policy year, customers can repay up to 10% of the total of:

  • The initial loan
  • Any additional borrowing
  • Any cash reserve releases
  • This 10% doesn’t include any interest that has built up. Customers can make as many repayments as they like, as long as:
  • Each payment is at least £50
  • They don’t go over the 10% annual limit. To repay more than 10% in a policy year, the lifetime mortgage will need to be repaid in full - including any additional borrowing, cash reserve payments, and interest built up across all loans. An early repayment charge may apply

What are the new interest-servicing repayment options? 

For every repayment that covers interest accrued in the current policy year, a 10% uplift (funded by Aviva) will be applied to the interest portion of that repayment.

To help you calculate the repayment amount, use the Lifetime Mortgage Calculator available on the Aviva Adviser website.

The calculator allows you to:

  • Model repayments if customers want to service a specific percentage of the interest—such as 25%, 50%, 75%, or 100%.
  • Simply enter the chosen percentage, and the calculator will display the appropriate repayment amount based on the loan details entered.
  • Enter a specific repayment amount if the customer prefers a fixed figure.

Important: The percentage of interest serviced, or repayment amount should be considered in line with the customer’s affordability and financial objectives. Advisers should ensure that any repayment plan is sustainable for the customer.

Can customers still make one-off repayments?

Yes, customers can still make one-off repayments. They will receive the uplift benefit (an extra 10% funded by Aviva) on the portion of the repayment that covers interest accrued in the current policy year.

Can customers set up repayments at any time during their plan and what payment options are available?

Yes - Customers can make repayments at any time. Repayment options include:

  • One-off payments via BACS, CHAPS, Faster Payments, or debit card (We do not accept credit cards.)
  • Regular monthly repayments by Direct Debit

Customers should contact our operations team on 0800 158 4177 to arrange repayments.
Important note for new customers: They must wait until their lifetime mortgage has completed before calling to set up a Direct Debit.

How does my customer benefit the most from the uplift? 

The timing of repayments can affect how much interest is cleared and how the loan balance changes.

  • The loan must have accrued interest for the uplift to apply.
  • Making repayments later in the policy year will generally have a greater impact on reducing the balance over time because it maximises the uplift applied to the interest portion.

We’ve explained this in more detail in our Customer Guide to Voluntary Partial Repayments, which includes examples comparing a one-off repayment at the end of the year with monthly repayments.

To help you model different scenarios, use our Lifetime Mortgage Calculator. This tool lets you show customers how repayment amounts affect their loan balance over time.

What happens if the customer stops making repayments?

All repayments are completely voluntary. Customers can stop or start making repayments at any time without penalty.

  • The interest rate remains fixed for life, just as it did with the Lifestyle Flexible Option.
  • The uplift rate is also fixed for the life of the policy. The uplift percentage is confirmed in Section 14 of the Key Facts Illustration (KFI) and Offer documents
  • Stopping repayments does not prevent customers from making future repayments if they choose.

Will the uplift provided by Aviva ever change?

The uplift percentage for a customer’s lifetime mortgage is shown in Section 14 of their Key Facts Illustration (KFI) and Offer documents. This bonus uplift rate is set at the outset of the lifetime mortgage and remains fixed for the life of that policy. Aviva may change the uplift percentage for new customers in the future, but this will not affect existing Lifestyle Flexible Advantage customers.

How is the uplift applied when repayments exceed accrued interest?

If customers pay back more than the interest accrued in the current year, the additional amount goes towards paying off the interest-bearing balance. This amount does not get the uplift.  You can see a worked example showing how the uplift percentage is applied in our handy guide.

How can we help clients understand the total cost vs. headline interest rate?

The Key Facts Illustration (KFI) remains unchanged because repayments are voluntary. It will continue to show the interest rate and projected loan balance assuming no repayments. The interest rate is not discounted.

On research portals, Aviva will return a total cost of loan that includes any repayments the customer has selected, along with the Aviva uplift. This will show as a reduced total cost of loan compared to no repayments.

Using the Aviva Calculator
Our Lifetime Mortgage Calculator allows you to:

  • Demonstrate the projected loan balance based on repayments, uplift, and house price inflation (HPI).
  • Show a comparable AER against similar repayment products.

Important for Iress users:
The total cost of loan calculation is not currently available within Iress results, so you will need to use the Aviva calculator to determine this.

Are there any tax implications for customers receiving the uplift?

No. The customer does not receive any payment directly. The uplift (the extra amount Aviva adds) is applied to the portion of the repayment that services interest and goes straight to reducing the loan balance.

It does not constitute income or a financial gain, so it does not trigger any tax liability.

Operational and Notification Processes

How do we monitor customers repayments?

You can track voluntary partial repayments by logging into the Adviser website and viewing your client’s lifetime mortgage details in the 'Myclients' section. The loan details page shows any VPRs made in the current policy year. Annual statements also show VPRS made in the current policy year and are available in the Documents tab.   

Documentation and Tools

What documents are available to customers, and how and when are they shared?

Customers with Lifestyle Flexible Advantage receive the same core documents as those with Lifestyle Flexible Option, including:

  • Key Facts Illustration (KFI) – provided during the quote process
  • Offer document – issued when the mortgage offer is made and includes the Terms & Conditions (T&Cs).
  • Annual statements –sent each year and available to view in MyAviva.
  • VPR completion letter – issued after a voluntary partial repayment is processed.

The Offer document and VPR completion letter have been updated to reflect the new uplift feature.

A voluntary partial repayment guide is available to share with customers

What support documents are available, and where can they be accessed?

The following suite of support material is available:

If you need additional support you can contact us here 

How is this product best researched on portals?

The Key Facts Illustration (KFI) remains unchanged because repayments are voluntary. It will continue to show the interest rate and projected loan balance assuming no repayments. The interest rate is not discounted.

On research portals, Aviva will return a total cost of loan that includes any repayments the customer has selected, along with the Aviva uplift. This will show as a reduced total cost of loan compared to no repayments.

Using the Aviva Calculator
Our Lifetime Mortgage Calculator allows you to:

  • Demonstrate the projected loan balance based on repayments, uplift, and house price inflation (HPI).
  • Show a comparable AER against similar repayment products.

Important for Iress users:
The total cost of loan calculation is not currently available within Iress results, so you will need to use the Aviva Lifetime Mortgage Calculator to determine this.

Do you provide a cost of loan calculator to help us understand the impact?

Yes. Our Lifetime Mortgage Calculator is available along with a user guide.

The calculator can:

  • Show the impact of repayments and the uplift (the extra amount Aviva adds to interest repayments made in the current policy year).
  • Project the outstanding loan amount over time, based on repayments including the uplift.
  • Display comparison projections when no repayments are made.
  • Allow advisers to enter property value and growth assumptions to help customers understand the risk of negative equity. (Important: Making repayments does not guarantee that money will remain for the estate when the property is sold and the lifetime mortgage is redeemed.)
  • Show the equivalent interest rate that would need to be offered to match the effect of repayments and uplift.

Additional features of the calculator

Model repayments:

  • For the full duration of the loan, based on the customer’s assumed life expectancy.
  • For a fixed number of years.

Repayment scenarios available:

  • Interest serviced – Enter the percentage of interest you want to service. The calculator will show the amount the customer needs to pay to achieve this. The uplift percentage required for this can be found in Section 14 of the customer’s Key Facts Illustration (KFI) or in the Adviser Sales Aid.
  • Full Voluntary Partial Repayment (VPR) allowance – Displays the repayment required for the customer to use their full 10% VPR allowance without incurring an early repayment charge.
  • Regular payments – Enter any amount you wish to model.

If the customer does not want to make repayments, enter 0.00 as the repayment amount.

I’m having trouble accessing the lifetime mortgage calculator, what do I do?

If you need support on our Lifetime mortgage calculator, please look at our user guide

When using the calculator you will need to:

  • Download and launch the calculator
  • Open the excel file
  • Click on LFA Forecast
  • Read the terms and conditions then ‘Agree and Proceed’
  • Enable content and macros
  • Start inputting client details

If you have received the calculator via email, then save the file before using it.  If you open it directly from the email, then you may experience issues.

If you need additional support you can contact us here

Existing Products

How does this impact a quote or application I have recently submitted on the Lifestyle Flexible Option?

Transitional arrangements are shown below for illustrations and applications in progress in pipeline on the Lifestyle Flexible Option

Illustrations:
All illustrations for the Lifestyle Flexible Option that fall within the 21-day quote guarantee period may proceed to application under the quoted terms.  If you wish to move the customer to the Lifestyle Flexible Advantage, please requote on this product.

Applications:
All applications for the Lifestyle Flexible Option that have not yet received an offer will continue to be processed under the terms of the original application. If you wish to move the application on to the Lifestyle Flexible Advantage, please contact our Operations team on 0800 206 2014.   Applications for the Lifestyle Flexible Option that expire after the 14-week offer period will automatically transition to the Lifestyle Flexible Advantage. These will be reoffered on prevailing rates applicable to Lifestyle Flexible Advantage.

How do I request additional borrowing for my Lifestyle Flexible Advantage client? 

We are currently developing a digital journey for Additional Borrowing (AB). In the meantime:

  • To submit an application: