We are now offering fixed early repayment charges (ERCs) for all new equity release customers

Making repayment options simpler

Although Aviva Lifetime Mortgages are designed to last the mortgage holder’s lifetime (or until they enter permanent residential care), plans can change.

You told us that an increasing number of your clients prefer to know beforehand how much they’ll need to pay back if they end their lifetime mortgage early. We're delighted to confirm that all new customers have the option to choose our fixed ERC for their Aviva Lifetime Mortgage. 

More certainty 

The fixed ERC option will give you and your clients more certainty.  It will mean your clients will know upfront what their charge will be if they do want to repay their mortgage early.

Gilt-based ERCs will still be available on all new equity release policies. You and your clients will now have a choice between a Gilt and a fixed ERC basis.

Our fixed based option reduces on a sliding scale over 15 years. The choice between fixed and gilt-based must be made at outset as the ERC option can’t be changed. All subsequent loans will have the same chosen charging model applied.

The great news is that the ERC exemptions which apply to our gilt-based plans will also apply to our fixed based contracts. This means eligible customers can still enjoy the many benefits we offer, for example,  10% per annum voluntary partial repayment (VPR) option.

A wider range of options

We have some of the widest lending criteria available and offer terms on an extensive range of properties – many more property types than most. Along with competitive interest rates, including medically enhanced rates, our postcode enhancements offer the opportunity to gain a better interest rate or a greater LTV, based on location.

Our initial offer period of 14 weeks, alongside our re-offer period of 14 weeks gives more certainty for the more complex properties you may come across. With a dedicated Business Development and Sales Support Team (including the equity release hub on our adviser site), we’re on hand to help you with each application.

And now with fixed ERC as an option for new customers, they can enjoy that extra peace of mind that comes with knowing exactly what’s around the corner if they want to repay their loan early.

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