Aviva has introduced a lower minimum drawdown value and tailored rates for lifetime mortgage customers.
Customers will be able to draw down a minimum of £500, instead of the previous minimum of £2,000.
According to Aviva, this will mean customers are not “obliged” to borrow more if only a small amount is required.
The provider is also offering tailored rates to customers applying for flexible drawdown, with factors such as changes to the property value, the borrower’s age, health and lifestyle information disclosed for the initial loan being taken into account.
The new lower minimum drawdown and tailored rates will be available to new and existing customers.
Greg Neilson, managing director, equity release at Aviva, said: “Along with the recently introduced enhancements to voluntary partial repayments, the new minimum borrowing levels for drawdowns and the way of calculating rates for each customer individually mean we offer greater flexibility throughout the life of the product to meet the changing needs of customers.”
Neilson added: “We are pleased to continue to evolve a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.”
Jan Johnson, director at 55 Plus Equity Release, commented: “This is another great example of lenders responding to the growing demand for equity release by offering increasingly flexible, customer-focused features.
“The minimum drawdown of £500 is a great innovation at a time when so many people have had unexpected financial challenges and shows how the sector is responding to provide innovative solutions to help homeowners have financial peace of mind.”
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