Our new Lifestyle Max lifetime mortgage: Frequently Asked Questions

25 Nov 2024

Why have you launched a new product for your higher LTV's?

  • We have designed the Aviva Lifestyle Max to meet a specific customer need. We recognise from Adviser feedback and customer research that there is a significant demand for higher loans for younger ages (aged 70 or younger) to help with the repayment of debt prior to retirement. The Target Market Statement explains who the product is designed for. Whilst we have designed a new product we are retaining one set of T&Cs and still offering the same flexible lending criteria.

What are the differences between the products?

What happens if a customer does not meet the target market for the Lifestyle Max product?

  • Although the Lifesyle Max is designed for customers who have an immediate financial need - for a one-off lump sum loan amount to pay off an outstanding debt - all other reasons for borrowing considered to be suitable for a lifetime mortgage are acceptable.  However, we strongly advise advisers to carefully consider the potential financial implications described under the Financial considerations section of the Target Market Statement and to attest to this during the online application

What is your LTV scale and how does this compare to your Lifestyle product?

  • Lifestyle Flexible Option LTV scale is 21% - 41%
  • Lifestyle Max LTV scale is 26% - 52%
    These are subject to change at any time but will be reflected in the online quote

How do I identify the product through the platform I use?

  • The differentiator is the product name 'Lifestyle Max'. It will be allocated the lifetime mortage account number range starting with a prefix 'ER' - the same as the Lifestyle Flexible Option. All customer documents will include the product name 'Lifestyle Max'

Can customers apply for additional borrowing/further borrowing?

  • Yes - the additional borrowing digital service can be used by the Adviser for the Lifestyle Max product, however additional borrowing is not guaranteed 

How can I get a quote for the Lifestyle Max product?

  • On all research portals and directly through the Adviser website. Following the input of the quote data the appropriate product(s) will be retrieved and shown in the research outputs

What happens if the valuation comes back different?

  • If the valuation is within 10% the application will continue to offer based on the lending terms applied for. If the valuation is outside of 10% our operations team will contact you to ask how to proceed. If the product needs to switch you do not need to resubmit an application. Operations will support the switch of products and a new valuation will not be needed

Will there be separate terms and conditions for the new product?

  • We will retain one set of T&Cs. A new edition 11 T&Cs has been created to include the Lifestyle Max alongisde the Lifestyle Flexible Option and is available on the adviser website in the document library. All offers and reoffers for the Lifestyle Flexible Option, produced and issued on or after 25th November will be based on T&Cs E11.

Would you ever return both products?

  • Yes where there is a cross over of LTV where both products are available based on the quote data input. If the adviser has selected a quote for the maximum loan amount both products will return showing maximum loan amounts which are applicable to each product. The adviser research is unchanged. All customer information including Health and lifestyle should  be captured to ensure the right product to meet the customers needs is returned

Should I capture medical details for the new product?

  • The adviser research is unchanged. All customer information including Health and Lifestyle should be captured to ensure the right product to meet the customers needs is returned. If the valuation is returned outside of 10% and the customer wants to switch from Lifestyle Max to Lifestyle Flexible Option the potential enhanced rates will only be returned at this point if health and lifestyle information has been entered. The Lifestyle Max product pricing however does not take into account Health and Lifestyle. 

What documents do you have to show me more information about the Lifestyle Max?

The following support documents are available in our document library

  • Target Market Statement giving clarity on who the Lifestyle Max is designed for and some new attestations
  • Value for money assessment
  • Terms and conditions (Edition 11)
  • Case study

The Target Market Statement (TMS) for the Lifestyle Flexible Option has been updated with some new attestations. You can find the updated TMS here

What happens if the customer takes near to max loan and wants additional borrowing (AB)? Does it take into account the rolled up interest or would borrowing be available?

  • Rolled up interest would be included in any future assessment of LTV, as is standard. As soon as the outstanding balance exceeds £1.5m there would be no AB available.

I've submitted an application for Lifestyle Flexible Option which hasn't completed yet - can I switch to the new product?

  • If you have applied on the Lifestyle Flexible Option and you now want to recommend the Lifestyle Max you must withdraw the current application and submit a new application