How Lifestyle Max works in simple terms

Lifestyle Max is a form of lifetime mortgage that is secured against a client’s home and is available to UK homeowners aged 55 or over, subject to the property meeting Aviva’s lending criteria. It provides a one-off tax-free lump sum of £15,000 or more that is secured against a client’s home. No mandatory repayments are required during the client’s lifetime, although Lifestyle Max offers a voluntary partial repayment feature.

The clients continue to own their property and remains responsible for meeting the terms of the lifetime mortgage and the property’s upkeep and insurance. The outstanding loan amount is typically repaid from the sale of the property when the last remaining borrower dies or moves into long‑term care, subject to the terms and conditions of the plan.

Interest is charged on both the initial loan and any interest already added. Over the long term, this compounding effect can significantly increase the amount owed. It is important that clients understand how this works and how it affects the cost of borrowing, the value of their estate and their financial resilience in later life. The loan will reduce the value of the client’s estate, meaning any inheritance left to beneficiaries will be reduced, and it may also affect eligibility for welfare benefits.

Borrowing at a high interest rate with a high LTV significantly increases the risk of negative equity during the customers’ expected lifetime. Consideration must be given to the customer’s future financial resilience the impact negative equity might have on their financial options and ability to maintain or raise income in later life. Customers who are not financially resilient in later life may have limited options when it comes to moving property, change of circumstances, obtaining additional borrowing and maintaining their property in accordance with terms and conditions.

Lifestyle Max includes a no negative equity guarantee. This means that, as long as the property is sold for the best price reasonably obtainable, the amount repaid will not exceed the sale proceeds. This protection applies to both the client and their estate by ensuring the loan balance can never exceed the value of the property, so no debt is passed onto beneficiaries once the home is sold.

Although repayments are not required, clients may choose to make voluntary repayments, within the limits set out in the product terms. This can help manage the outstanding balance but is entirely optional. When recommending repayments, consideration must be given to the longer-term impacts of negative equity and that once paid, the repayments cannot be withdrawn at a later date.

Early repayment charges may apply if the mortgage is repaid in the earlier years. With Aviva, early repayment charges only apply during the first four years of the lifetime mortgage. The charge is a fixed percentage of the initial loan and any subsequent loans, including interest accrued up to the date of repayment. Advisers should ensure clients are aware that a lifetime mortgage is designed as a long‑term solution and may not be suitable where short‑term flexibility is a priority.

Lifestyle Max should be considered in the context of a client’s wider retirement planning, taking into account alternative options and the long‑term implications of equity release.

Explore the full product details.