If you're considering ways to unlock your home’s equity, Aviva Equity Release stands out in 2025 thanks to its competitive fixed interest rates, flexible borrowing options, and strong presence in the UK market.

Equity release is increasingly used as a retirement funding tool, over 90,000 homeowners made voluntary repayments reducing their equity release debt in 2022 alone³. This trend underscores both the product's growing adoption and consumer confidence in responsibly managing borrowed equity.

Aviva’s equity release offerings are award-winning: they were named Best Overall Provider for Lifetime Mortgages at the 2023 Mortgage Solutions Equity Release Awards, and also received titles such as Best Equity Release Lender and Best Customer Service from What Mortgage and Personal Finance Awards. With such credentials, Aviva is well positioned to meet your retirement funding needs.

In this article, we’ll take a deep dive into Aviva’s products, including standard and enhanced lifetime mortgages, analyse their benefits and drawbacks, and benchmark them against other UK providers to give you a well-rounded view.

Stick with us, it’s time to evaluate whether Aviva’s equity release options align with your retirement strategy.

NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of Aviva. This article must not be interpreted as advice, and it isn't a solicitation to conduct transactions in any financial product provided by Aviva.

What Is Aviva Equity Release?

Equity release allows homeowners aged 55 and over to access tax-free cash from their home’s value without selling or moving.

The most common option is a lifetime mortgage, where no monthly repayments are required, instead, the loan and interest are repaid when the property is sold, usually after death or moving into long-term care.

Why Consider Aviva?

Aviva is one of the UK's longest-standing financial institutions and a leading provider of equity release products. It has helped over 250,000 customers release equity from their homes since entering the market in 1998⁴.

As of 2024, Aviva is a top 5 equity release lender in the UK, offering flexible features such as voluntary repayments, inheritance protection, and downsizing protection⁵.

Who Is Aviva?

Founded in 1696, Aviva is the UK’s largest life insurer and serves over 18 million customers across the UK, Ireland, and Canada⁶.

While best known for its insurance, savings, and retirement products, Aviva’s equity release plans are regulated by the Financial Conduct Authority and meet standards set by the Equity Release Council, ensuring protections like the no negative equity guarantee.

How Do Aviva Lifetime Mortgages Work?

Aviva offers equity release through a lifetime mortgage, a loan secured against your home that lets you unlock tax-free cash without moving out.

Interest is added to the loan over time (compounding), and both the loan and interest are repaid when your home is sold, typically after death or a move into long-term care.

Since launching its equity release offering in 1998, Aviva has helped customers unlock over £10 billion from their homes⁷.

Aviva’s Lifestyle Flexible Option

The Lifestyle Flexible Option is Aviva’s core lifetime mortgage plan. Key features include:

• Minimum release amount: £15,000
• Eligibility: Homeowners aged 55 or older
• Flexible withdrawals: Take a lump sum or draw from a cash reserve facility (like a pre-approved loan pot)

This flexibility helps control how much interest you accumulate, as you only pay interest on funds you've withdrawn, not on the unused reserve.

🔎 Example: If you're approved for £80,000 but only draw £40,000 initially, you'll only accrue interest on that £40,000. The remaining £40,000 remains available to draw when needed, without triggering early charges or further applications.

Optional Cash Reserve Facility

Aviva lets you set aside up to 50% of your total loan in a cash reserve. This lets you:

• Withdraw funds gradually, as needed
• Limit the impact of compound interest
• Maintain flexibility without reapplying⁸

Partial Repayments — Up to 10% Per Year

With Aviva’s plans, you can make voluntary repayments of up to 10% of the original loan amount each year, with no early repayment charge.

💡 This can help reduce the final interest owed, preserve inheritance, and keep long-term borrowing under control, a key concern for many retirees.

Aviva’s Enhanced Lifetime Mortgage

Aviva also offers an Enhanced Lifetime Mortgage, which provides:

• A higher loan-to-value (LTV) ratio
• Or a lower interest rate
• Based on medical history or lifestyle factors (e.g. smoking, certain health conditions)

This plan is designed to offer better terms to those with reduced life expectancy, allowing them to unlock more value or reduce the cost of borrowing.

📢 Important: Eligibility for enhanced plans is assessed via a medical questionnaire and varies by case. Always speak with a qualified equity release adviser before applying.

Feature	Lifestyle Flexible Option	Enhanced Lifetime Mortgage
Minimum Age	55	55
Minimum Loan	£15,000	£15,000
Property Value (min)	£75,000	£75,000
Medical / Lifestyle Criteria	❌ Not required	✅ Yes – based on health and lifestyle
Loan-to-Value (LTV)	Standard (e.g. up to 52% at age 85)	Higher than standard if eligible
Interest Rate	Standard rate	May be lower if impaired life expectancy
Cash Reserve Facility	✅ Available	✅ Available
Voluntary Repayments	✅ Up to 10% per year, penalty-free	✅ Same
Inheritance Protection Option	✅ Available	✅ Available
Downsizing Protection	✅ Included after 5 years	✅ Included after 5 years
Early Repayment Charges (ERCs)	May apply after 10% allowance	Same as Lifestyle plan

💡 Tip: If you have a medical condition, are a smoker, or take certain prescribed medications, you may qualify for the Enhanced plan, even if you’re in good day-to-day health.

Aviva Lifetime Mortgage Interest Rates Explained

Understanding how interest is applied to Aviva’s lifetime mortgages is essential, as it directly affects how much your loan will grow over time and what your estate will eventually repay.

What Interest Rates Does Aviva Offer?

Aviva offers fixed lifetime mortgage interest rates, typically ranging between 6.10% and 7.30% AER as of 2024.

The exact rate you’ll be offered depends on:

• Your age (older applicants usually get higher loan-to-value and sometimes better rates)
• The value of your home
• How much equity you want to release
• Whether you qualify for Aviva’s Enhanced plan (based on medical conditions or lifestyle)

🔎 Example: A 70-year-old homeowner releasing £60,000 from a £300,000 property might be offered a fixed interest rate of 6.25% AER, locked in for life, regardless of market changes.

How Does Interest Work on a Lifetime Mortgage?

Interest is rolled up (compounded) annually or monthly (depending on the plan). This means:

• You don’t need to make any monthly repayments unless you choose to
• The interest is added to the loan each year, increasing the amount owed
• The full amount, initial loan + interest, is repaid when the property is sold (usually after death or long-term care entry)

Voluntary Interest Repayments

Aviva gives you the option to repay up to 10% of your original loan each year without any early repayment charge. This is especially useful for:

• Reducing the total compound interest owed over time
• Preserving more of your home’s value for inheritance
• Maintaining more control over long-term debt

Interest Rate Guarantee

Once your rate is confirmed, it is fixed for life, even if you live for 30+ years. This helps with long-term financial planning and avoids the uncertainty of rising rates.

✅ Unlike variable-rate lifetime mortgages, Aviva’s fixed-rate options ensure your interest cost won’t change over time.

Are Aviva’s Rates Competitive?

While rates vary by provider, Aviva is known for offering competitive fixed rates, especially when paired with:

• Flexible drawdown (cash reserve) options
• Voluntary repayments
• Downsizing protection and ERC safeguards

For many homeowners, this combination of features and predictability makes Aviva’s rates a strong offering in the UK equity release market.

How Much Equity Can You Unlock With Aviva?

The amount you can unlock through Aviva’s lifetime mortgage depends primarily on your age, property value, and health status.

As a general rule, the older you are, the higher the percentage of your home’s value you can release. Health conditions or lifestyle factors may also increase the amount available if you qualify for Aviva’s Enhanced Lifetime Mortgage.

How Much Could You Borrow?

Aviva allows homeowners to release between £15,000 and £1 million, subject to eligibility and property value⁹.

Age	Estimated Loan-to-Value (LTV)
55	Approx. 19.5% of property value
65	Approx. 29–34%
75	Approx. 38–43%
85+	Up to 47.9%

🔎 Example: A 75-year-old with a home valued at £300,000 may be eligible to release around £117,000 with a standard lifetime mortgage, or more if eligible for the enhanced option.

Cash Reserve (Drawdown Facility)

With Aviva’s Lifestyle Flexible Option, you can choose to take some funds upfront and leave the rest in a cash reserve. This gives you the flexibility to draw more funds in the future without reapplying.

Key details:

• Minimum initial withdrawal: £15,000
• Minimum drawdown: £500
• Minimum reserve balance: £5,000 to keep the facility open
• Interest only applies to money you withdraw, not funds held in reserve

This approach helps reduce the total interest owed over time and gives you better control over your retirement income.

Does Aviva Offer an Equity Release Calculator?

Yes, Aviva provides a free online calculator to help you estimate how much equity you may be able to release.

To get a personalised estimate, you’ll need to provide:

• Your age
• Property type (e.g., detached, flat, etc.)
• Estimated property value

Aviva Equity Release Eligibility and Costs

To qualify for Aviva’s equity release plans, you must meet specific criteria around age, property type, and loan size. You'll also need to cover some setup fees unless waived by Aviva or your adviser.

Who Can Apply for an Aviva Lifetime Mortgage?

To be eligible for Aviva’s Lifestyle Flexible or Enhanced Lifetime Mortgage, you must:

• Be at least 55 years old (youngest applicant if joint)
• Own a UK-based property worth at least £75,000 (excluding Channel Islands and Isle of Man)
• Be applying for a loan of at least £15,000
• Use the property as your main residence
• Have no mortgage, or a small balance that can be cleared during the process
• Not leave the home unoccupied for more than 6 consecutive months

ℹ️ Tip: Some property types (e.g. flats above commercial units, non-standard construction) may be restricted, speak with a regulated equity release adviser to assess eligibility.

What Does Aviva Charge?

Here’s a breakdown of common fees associated with an Aviva lifetime mortgage:

Fee	Typical Cost	Details
Arrangement Fee	£0 to £995	May be waived depending on the product or plan
Valuation Fee	Free for properties up to £5 million	Paid by Aviva; external surveyor provides the valuation
Re-Inspection Fee	£60	Charged if a second property visit is needed
Legal Fees	Varies (~£600–£1,000)	You appoint your own solicitor to manage legal work
Early Repayment Charges	Varies (if over 10% repaid annually)	Typically waived after 8–10 years or in certain cases (e.g., death of partner)
Additional Charges	Case-by-case	May apply for drawdowns, ownership changes, or switching properties

💡 Most fees (except legal) can be added to the loan if needed, so there are usually no upfront costs for arranging a plan.

Pros and Cons of Aviva Lifetime Mortgages

Choosing an Aviva lifetime mortgage gives you access to one of the most flexible and established equity release products in the UK.

However, like any financial product, it comes with trade-offs that must be weighed carefully, especially regarding long-term costs and the impact on your estate.

Key Benefits of Aviva Equity Release

Here’s what makes Aviva’s plans stand out:

Access to Tax-Free Cash

You can release a lump sum (or draw down funds over time) without paying income tax on the amount borrowed. However, this money may affect means-tested benefits, so always check with a regulated adviser.

No Negative Equity Guarantee

Included with all Aviva lifetime mortgages, this guarantee ensures you (or your estate) will never owe more than the value of your home, even if property prices fall.

Read More: No Negative Equity Guarantee Explained

Inheritance Protection Option

You can ringfence a percentage of your home’s value to pass on to loved ones, even if interest eats into the rest of the property value. This may reduce the maximum you can borrow.

Voluntary Repayments

You can repay up to 10% of the original loan each year penalty-free, helping to limit how quickly compound interest grows. Payments start from just £50 and can be made flexibly.

Downsizing Protection

If you move to a smaller home after five years, you may repay the loan early without penalty, helpful for those planning to relocate later in life.

Potential Drawbacks of Aviva Equity Release

Here are the main considerations and risks:

Compound Interest Builds Quickly

If you don’t make repayments, interest compounds over time. For example, borrowing £50,000 at 6.5% would grow to over £95,000 in 10 years, more than doubling your debt.

Reduced Inheritance

Equity release reduces the value of your estate. Even with inheritance protection, a large portion of your home may be used to repay the loan.

Impact on State Benefits

If you receive means-tested benefits (like Pension Credit or Council Tax Support), releasing equity could reduce or eliminate your entitlement.

Early Repayment Charges (ERCs)

While up to 10% per year is penalty-free, larger repayments outside of allowed limits may incur early repayment charges, unless you qualify for an exemption, like moving into long-term care.

Long-Term Care Definition Matters

Aviva applies a specific definition to “permanent long-term care”. If you move for health reasons but don’t meet this definition, you could trigger ERCs unintentionally. This makes adviser support critical when planning for future scenarios.

🧠 Expert Insight: Many of these risks are manageable with careful planning, especially if you use the voluntary repayment and inheritance protection features. But these plans are designed for long-term use, and switching or exiting early can be costly.

Aviva Lifetime Mortgage: Pros and Cons at a Glance

Pros	Cons
Tax-free cash: Release equity from your home without paying income tax	Compound interest: Without repayments, interest grows rapidly over time
No Negative Equity Guarantee: Never owe more than your home is worth	Reduced inheritance: Loan and interest reduce what your estate can leave behind
Inheritance protection: Ringfence a portion of property value for loved ones	Impact on benefits: Means-tested benefits may be affected by the cash you release
Voluntary repayments: Repay up to 10% of the original loan per year, penalty-free	Early repayment charges (ERCs): Penalties apply for larger or early repayments in some cases
Downsizing protection: Move after 5 years and repay the loan with no charge	Long-term care conditions: Aviva’s definition of care may affect how charges are applied

Tip: A qualified equity release adviser can help you tailor your plan to maximise flexibility while reducing risks.

How Flexible and Secure Is Aviva’s Equity Release?

When choosing a lifetime mortgage, it’s important to know whether the product, and provider, will remain stable, flexible, and compliant in the years to come. Aviva’s equity release offering stands out for several reasons.

Long-Term Product Flexibility

Aviva’s equity release plans include features designed to adapt to life’s changes:

• Voluntary repayments: Reduce interest without penalty (up to 10% per year)
• Downsizing protection: Move to a smaller home after 5 years without triggering early repayment charges
• Portability: Your plan can transfer to a new eligible property, subject to valuation and approval
• Inheritance protection: Lock in a percentage of your home’s value to pass on to loved ones

These features make it easier to manage the product over time and protect your estate’s value.

Provider Stability and Regulation

Aviva Equity Release UK Limited is:

• Authorised and regulated by the Financial Conduct Authority (FCA)
  (FCA Reference Number: 310433)¹⁰
• A member of the Equity Release Council (ERC), which ensures all plans include key protections like the No Negative Equity Guarantee and independent legal advice¹¹
• Backed by over 325 years of operational history and over £10 billion released in equity since 1998

Ethical and Sustainable Business Practices

While not directly tied to product features, Aviva is committed to ethical investing and has pledged to become a net-zero company by 2040. This aligns with the values of many customers who want financial providers with strong ESG credentials.

Note: These sustainability commitments don’t affect your equity release terms, but may be relevant when choosing a provider for long-term peace of mind.

What Is Aviva’s Home Reversion Plan?

Aviva previously offered a home reversion plan, which allowed homeowners to sell part (or all) of their property to Aviva in exchange for a tax-free lump sum or regular income, while continuing to live in the home rent-free.

Unlike a lifetime mortgage, you wouldn’t repay any loan or accrue interest. Instead, Aviva would own a share of your property, and recover its share of the proceeds when the property was sold (typically after you pass away or move into long-term care).

Key Features of Home Reversion Plans (Legacy Product)

Feature	Details
Ownership	You sell a portion (or 100%) of your home to the provider
No Interest	No loan or interest to repay
Lump Sum or Income	Receive a one-off payment or regular income
Live Rent-Free	Remain in the home for life under a lifetime lease
Below Market Value	You typically receive 20–60% of market value for the portion sold
Inheritance Option	You could retain a % of your home to preserve inheritance

Does Aviva Still Offer Home Reversion Plans?

No, Aviva has discontinued home reversion plans for new customers.

Today, Aviva exclusively offers equity release via lifetime mortgages, which allow you to:

• Retain full ownership of your home
• Access a lump sum or flexible drawdown
• Make voluntary repayments if you wish
• Include inheritance protection

If you’re an existing Aviva home reversion customer, your agreement remains valid and protected under the original terms.

ℹ️ Need flexibility without giving up ownership?
A lifetime mortgage may be a more suitable modern alternative. Speak with a regulated equity release adviser to compare your options.

How to Apply for an Aviva Equity Release Loan

Applying for an Aviva equity release plan involves working with a qualified, regulated financial adviser, Aviva does not offer direct-to-consumer equity release. This ensures you receive personalised guidance and that the product is genuinely suitable for your needs.

Step-by-Step: Applying for Aviva Equity Release

1. Speak to an Independent Adviser
   Start by contacting a regulated equity release adviser. You can do this via Aviva’s website, or through a specialist broker.
2. Initial Consultation
   Your adviser will assess your eligibility, financial goals, alternatives, and run affordability checks. If equity release is suitable, they’ll walk you through Aviva’s options.
3. Property Valuation
   Aviva will arrange for a professional, independent valuation of your property, free of charge for homes under £5 million.
4. Legal Advice
   You must appoint an independent solicitor to ensure you fully understand the legal terms. This is a mandatory step under Equity Release Council rules.
5. Receive Your Offer
   Once the valuation and paperwork are complete, you’ll receive a formal offer. After signing, funds are usually released within 4–6 weeks from application.

Note: You are only charged if you proceed with the product. Advice is free up until the point you accept an offer.

Aviva’s Customer Reputation & Awards

Aviva has received recognition for both product innovation and customer service in the equity release space:

• Best Provider – Lifetime Mortgages (Mortgage Solutions, 2023)
• Best Equity Release Lender & Customer Service (What Mortgage Awards, 2022)
• Best Equity Release Lender (Personal Finance Awards, 2021/22)

What Do Customers Say?

Aviva’s service receives mixed reviews depending on the platform:

Platform	Score	Review Count
Trustpilot	⭐ 4.2 / 5	28,000+ reviews
Reviews.io	⭐ 2.1 / 5	400+ reviews

These scores were last verified on 17/06/2023 and may have changed since.

Many customers praise the ease of application, flexible features, and adviser communication, though some negative reviews cite issues unrelated to equity release, such as general insurance or pensions.

Can I Manage My Plan Online?

Yes, once your equity release plan is in place, you can manage your policy via the MyAviva app, which allows you to:

• View your balance
• Make voluntary repayments
• Access plan documents securely

FAQs About Aviva Equity Release Options

This section provides answers to common queries, helping homeowners understand Aviva's equity release options.

Aviva Equity Release’s Location and Contact

Aviva Equity Release’s location and contact details are listed below.

You can contact the company on:

• +44 207 283 2000
• helpdesk@aviva.co.uk
• Wellington Row, York, North Yorkshire, YO901WR.

In Conclusion

Aviva remains one of the most trusted equity release providers in the UK, offering flexible, FCA-regulated lifetime mortgages backed by over 300 years of financial experience.

With options for voluntary repayments, inheritance protection, and downsizing flexibility, Aviva’s plans are built to adapt to your changing needs in later life, while helping you unlock tax-free cash from your home.

That said, equity release isn’t right for everyone. It’s essential to weigh the long-term costs, impact on inheritance, and effect on means-tested benefits before committing.

Speak with a qualified equity release adviser to see if an Aviva lifetime mortgage fits your circumstances, and to compare it with other leading UK providers. Advice is free unless you choose to proceed.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.