The Aviva equity release calculator is not impartial at all. This calculator is tied to Aviva equity release products, mainly the Lifestyle Flexible and Lump Sum Max plans. This is different from how other equity release calculators work on the Internet. Most companies which offer a product want their consumers to know exactly what their product will cost and whether it is a viable option, so their goal is not to give you industry wide results, but details on their plans only. To understand the calculation results, it is best to know how Aviva works.
Aviva as a Lifetime Mortgage Company
Aviva is a company with their own product range. The information they supply on their website is based solely on their products like the Lump Sum Max Plan and the Aviva Lifestyle Flexible Plan option. For several reasons, Aviva decided to end their sales force in July 2013. This tied sales force worked for Aviva offering information from qualified brokers. Now, when you contact Aviva, you are sent to an independent company of equity release advisers; however, these advisers are tied under a partnership in which the Aviva products are all that is discussed with a consumer who calls. It means if you want more information about Aviva products you can get it, but if you want to speak about the “best” product for you, the representative will still be talking about Aviva products and not offer recommendations based on other company products.
An independent version of a lifetime mortgage could have a lower interest rate, but the sales representative is offering you a higher interest rate, which means you are not getting the best equity release advice available to you.
The Calculator is Dependent
As the advisers are dependent on Aviva, so is the Aviva equity release calculator. It is going to provide you a maximum equity release lump sum amount based on Aviva interest rates and products. You may see the maximum standard lump sum is offered in the results or they may offer something lower than the maximum amount. If you use the Aviva tool you might be disappointed with the results and figure your research is over. You may give up on the idea of finding an equity release product altogether.
You really should not, however. Rather than using a calculator that is not independent, you should use one that is. By taking on the entire market with an independent website you can determine the actual options you have with regard to maximum equity release. Of course, by gaining results from more than one company, you may be convinced equity release can assist you to solve your financial issues, where is best may be more difficult.
Financial Issues have other Options
Equity release is not the only answer to your financial woes in retirement. You should not base your decision to go through with equity release on skewed results. You also want to be aware of other options to your financial issues than using equity release. It is an answer for some, but it is not always best for every homeowner out there.
Check the numbers you receive from a calculation against downsizing your home, lowering your current lifestyle expenses, as well as the inheritance you may be unable to leave behind. With lifetime mortgages interest can compound and wipe out any inheritance from a home sale or take the home away from your beneficiaries. For some families this is just not a plausible option.
The only way to make certain this does not happen is to downsize to a smaller home, curb spending so that your retirement fund will last longer or use less in a lifetime mortgage to protect inheritance.
There are inheritance guarantees you can put into the contract with a lifetime mortgage, which means you could protect part of the home. However, you may not be able to take out as much in the lump sum as you desire.
Calculating all the Options
Now that you understand there is more than one way to solve your current financial difficulties, it is time to make a few points. Even when you conduct a calculation on the Aviva equity release calculator or other calculator and speak with a representative, you do not have to go through with the product outlined. You can seek other advice or back out of the whole process completely. Until you sign the contract you can say no to equity release. Make certain it is what you want before you follow through.