Aviva is expanding the pilot of its unique new flexible rating tool for equity release, following an initial testing period.  This new system allows advisers to tailor the Aviva Lifetime Mortgage proposition for each customer by tailoring variables such as cash-back, valuation fees and the loan-to-value to generate the best interest rate for a customer’s needs (including reserved amounts).

This new approach, which offers greater flexibility and is the first of its kind, comes as research from Aviva reveals that the typical over-55 has just £27 per month in disposable income [see other release for more info].

Advisers will be able to determine the interest rate of the bespoke product by inputting the customers’ age, medical details, level of loan (inc. reserve), cash-back amount and valuation charge into the tool.  

This tool was piloted in May by Key Retirement Solutions, Age Partnership and Cavendish Equity Release who have all committed to using it going forward.   It will now be expanded to other key accounts and will be available direct from Aviva in late summer.

Roger Marsden, head of at retirement at Aviva, said:

“This product is a significant step forward for the market as it allows advisers to build the best possible scheme for their client’s individual circumstances.  The initial pilot has been a huge success and the feedback we have received showed there is a significant appetite in the market for these types of tailored products.            

“With today’s over-55s having just £27 per month in disposable income, yet with many having significant housing equity, more and more people are going to start considering how they can use their home to improve their standard of living or meet unexpected costs.  Aviva is committed to making equity release as accessible to consumers as possible.”