Unlock more for your clients
Part of our Equity Release offering is a lifetime mortgage called the Lifestyle Max. This product offers a higher LTV range than the Lifestyle Flexible Option. Your client can borrow £15,000 or more tax-free with a fixed rate lifetime mortgage. The amount available depends on factors, such as their age and the value of their property. A cash reserve facility is not available. No repayments are normally needed, as the loan's usually repaid in full from the sale of the property when your client dies or moves into long-term care, subject to our terms and conditions.
Higher LTV & Low Fixed % ERC term
The Lifestyle Max typically offers a higher LTV range and shorter Fixed % ERC term compared to the Lifestyle Flexible Option
Home security
Your client still owns their home and can live there until they die or move into long-term care, subject to our terms and conditions
Be aware
The amount owed can quickly increase, which will reduce the amount of inheritance your client can leave
Product details
Why Lifestyle Max?
Our Lifestyle Max is a fixed rate lifetime mortgage that pays a tax-free lump sum of £15,000 or more to your client. Your client will still own their home and can live in it until they die or move into long-term care subject to our terms and conditions. This applies to both borrowers on joint lifetime mortgages.
With a typically higher LTV, Lifestyle Max can be particularly suitable if your client has an immediate financial need to borrow a higher loan amount. Enhanced rates do not apply.
Your clients should be aware that during the mortgage term, interest is charged on the amount borrowed plus interest already added, which can quickly increase the amount owed. They won't have to pay tax on the amount they release, but it may affect their tax position and eligibility for certain welfare benefits. It will also reduce the amount of inheritance they can leave.
Great benefits as standard
- Your client receives a tax-free lump sum to spend as they choose
- Voluntary partial repayments. Each policy year, your client can choose to repay up to 10% of the initial loan plus any additional borrowing loan(s)without incurring an early repayment charge. There is no limit on the number of repayments, but each repayment must be at least £50
- Interest rates are guaranteed for 14 weeks as detailed on your client's offer. If the loan does not complete within this time, the case will be reviewed and a reoffer will be issued on prevailing rates which are guaranteed for a further 14 weeks
- No upper age limit - anyone aged 55 or over can make use of the equity in their home
- Online access - you and your client can see up-to-date policy details 24/7
- Downsizing protection is a standard product feature which allows a client to move to a property that doesn't meet our lending criteria and repay their lifetime mortgage in full without paying an early repayment charge. The lifetime mortgage must have been held for 3 years before downsizing protection can be used (terms and conditions apply)
Peace of mind
- No-negative-equity guarantee - your client (or their estate) won’t have to pay back more than the property sells for, as long as it's sold for the best price reasonably obtainable
- Optional inheritance guarantee - your clients may be worried that the inheritance they leave will be reduced, but this guarantee allows them to safeguard a percentage of their home’s value for their estate, although this will reduce the amount they are able to borrow
- Moving-home option - your client may be able to transfer their lifetime mortgage to a new home as long as it meets our lending criteria at the time
- Your client may be able to borrow more in the future, though we can’t guarantee this and again it would depend on our lending criteria at the time
Facts and figures
|
| Limits | Additional info |
| Age | · Minimum age 55 · No maximum | · For joint policies both applicants must be at least 55 |
| Property value | · Minimum value £75,000 · Maximum value £2 million or £3 million in London and South East | · For leasehold properties the remaining lease length will determine what percentage of the property valuation is used to work out how much your client can borrow. |
| Loan amount | · £15,000 to £1,000,000 · We consider up to £1.5 million upon request
| · No cash reserve facility |
| Voluntary partial repayments | · Minimum £50 · Maximum 10% of total amount borrowed | · Each year clients can repay up to 10% of the amount they've borrowed. If your client borrows more at a later date, they can also repay up to 10% of each of those initial loan amounts each year. The minimum they can repay in each installment is £50. The payment methods we accept are BACS, CHAPS, Faster Payments or Debit card. We are unable to offer a regular repayment method.
|
| Residency | The property must be in England, Wales, Scotland or Northern Ireland (excluding the Channel Islands or Isle of Man) | · The property must be your client's main residence and must meet our lending criteria. If the property is leasehold, the sum of the years remaining on the lease plus the age of the youngest borrower must equal at least 160 years. Lease lengths with a remaining term of less than 75 years will be declined regardless of the youngest borrower's age. |
Fees and charges
Here we summarise some of the charges and fees your clients may need to pay. For full details please download our Tariff of Charges.
| Charge | Details | |
| Interest | Calculated daily and compounded annually. | |
| Arrangement fee | Shown in your client’s Key Features Illustration | |
| Fixed percentage early repayment charge | An early repayment charge may apply if your client wishes to repay their loan in full before they die or need long-term care, subject to our terms and conditions. The early repayment charge is a fixed percentage of the initial loan and each subsequent loan including interest accrued up to the date of repayment. The percentage applied depends on how long your client has had the loan(s) for. For more information on our fixed percentage early repayment charges and when a charge doesn't apply please read our Lifetime mortgage fixed early repayment charges. The table below shows the current fixed early repayment charge percentage rates:
| |
| Year | Percentage | |
| 1 | 8 | |
| 2 | 7 | |
| 3 | 6 | |
| 4 | 5 | |
| 5 onwards | 0 | |
| Legal fees | Your client is responsible for paying their own legal fees. Aviva's legal costs and any disbursements are covered by the arrangement fee. | |
| Commission | 2.25% of the initial loan. | |
| Revaluation fee | If an application takes more than 6 months to process, your client will need another property valuation. | |
| Reinspection fee | £60 if the home needs to be inspected again - for example after essential repairs have been carried out | |
| Additional borrowing fees | Please download our additional borrowing brochure. | |
| Valuation fees | No upfront valuation fee on initial borrowing. | |
Client suitability
- Sourcing of later life borrowing where traditional mortgages are not an option – for example to replace interest only mortgages where no repayment vehicle is in place
- Quality of life – remaining in their own home and staying independent is a key aim, with home adaptations and paying for care beyond that provided by the state
- Helping a younger generation struggling to get onto the housing ladder – releasing value locked in older generation's houses
Lifestyle Max is designed for clients who:
- Are homeowners aged 55 or over who need to raise capital
- Have no mortgage or can pay off their mortgage with the proceeds of the loan
- Have a minimum property value of £75,000
- Need to borrow at least the minimum £15,000
- Require a fixed rate of interest throughout the term of the lifetime mortgage
- Have no need for a cash reserve facility
- Have a need to borrow a higher loan amount to support their immediate financial need
- Live in the UK (excluding the Channel Islands and the Isle of Man)
It’s unlikely to be suitable for:
- For customers who want or need a cash reserve facility which allows regular drawdowns for longer term financial planning
- Clients who have savings or other money they could use first
- Those who would prefer to use a product that lets them release cash by selling all or part of their home
- Those who already have a large mortgage they couldn’t pay off with the proceeds of the loan
- Clients who’d prefer to sell their property and downsize
Things your clients should consider:
- Involving their family in the decision
- For couples, ensuring both borrowers understand the commitment
- The impact on their state and welfare benefits
- Whether releasing equity could affect their tax position
- How releasing equity will reduce the amount of inheritance they can leave
- Ensuring they’re prepared to commit to this for life, as early repayment charges could be expensive
- Understanding the costs involved, particularly the build-up of interest over the term of the lifetime mortgage
- Longer term financial needs especially if the maximum loan amount is taken at outset reducing the availability of further borrowing in the future
Possible alternatives to equity release include:
- Selling or using other assets
- Local authority or other type of grant
- Taking out a standard secured or unsecured loan, if your client can afford the repayments
- Selling their home and downsizing
- Adjusting their standard of living
- Moving in with children
- Borrowing money from family
- Selling part or all of their home using a home reversion plan
If you are submitting an initial borrowing application online, you can find more support in our article - What you need to know about the Consumer Duty Target Market for equity release.
Quote, apply and track initial borrowing cases online
Visit Equity Release online servicesKey documents and resources
Related products
Lifestyle Flexible Option
A lifetime mortgage with either an initial cash lump sum of £15,000 or more, tax-free or an initial cash lump sum of £10,000 or more with the flexibility of a cash reserve of at least £5,000 from which your client can draw money as and when they need it.
Annuities
Post-pension freedoms, annuities remain a viable option for many clients, whether they use some or all of their retirement fund. All our annuities come with a 1-year guarantee and 90-day value protection.
Lifetime Care
For clients who need long-term care for a physical disability or mental impairment. Our plans help to fund care fees for people either currently receiving care or about to receive care.
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