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Prepayment penalties for Aviva | Equity Release Supermarket
Over the past 15 years, AVIVA has proven to be the most preferred type of lifelong mortgage program. Admittedly, during this period there was a cloud hangs over their life style flexxi mortgage area and this is the problem about the maximal prepayment penalty & the absence of a fractional redemption option.
It has always been a case for everything or nothing when it came to pay for Aviva's stock option programs - now we have a choise. Over the past few week, Aviva has courageously taken action to mitigate these problems by making some courageous changes to its lifelong mortgage program. On Monday, 28 April, the lively change in the Aviva Lifestyle Mortgage range began.
If Aviva were to submit any new requests for EGRs from this date onwards, it would be able to make repayment in part to Aviva. Your innovation step towards repayment of up to 10% of the loaned principal & the capacity to reduce after 5 years and pay back the debt without penalties has conquered a large part of the population.
Now Aviva has reacted to the Hodge Flexible Lifetime Mortgage Plan's appeal by taking over the 10% payback options and adding more useful functionality! New era for the share approval process has begun. What does the Aviva Voluntary Reimbursement Facility do in real life? Since the beginning of the new Aviva Share Free Float there has been the possibility to make ad hoc redemptions to Aviva.
The maximum limit on Aviva's initial debt is 10%, which can be redeemed in one year. An example is when a £40,000 amount of own funds was originally freed at an interest of 5. It would always waver between these two numbers, depending on when the 2,272 pounds refunds were made.
Depending on how much is first lent and under the assumption that 10%pa max paybacks can be retained for the term, Equity Release Supermarket can determine when the schedule can be fully paid back without penalties! For example, Equity Release Supermarket has charged someone who borrows 40,000 on the Aviva's much-loved interest of 5.
What do I do to make physical voluntarily returns to my account? Once you receive your first mortgage settlement, you will receive a warning for your redemption. At this point, the first redemption can be made to aviva. Adeptly, Aviva has taken up the topic of MMR (Mortgage Market Review) here.
Periodic repayments of the Aviva Equity Relase Programme cannot be made. While Aviva allows up to 4 repayments per year, with a £500 or higher threshold, the refund procedure still needs to be handled by the central processing team. The refund procedure would include a telephone call to the Aviva agencies to inform them that a refund should be made to them.
As a next stage, the funds would be sent in the shape of a check, loan or charge cards or wire transfers for which Aviva provides its data and number. Therefore, in both cases, even after these two occurrences, no refunds can be made for 12 month.
Conversely, if a client has made refunds and has an available liquid pool under its drawing schedule, it cannot obtain the pool or supplementary credit until 12 month after its last draw. Those provisions would have been effective in preventing back and forth movements of liquidity within the scheme, which would no doubt have made the Aviva share option schemes uncontrollable and profitable.
While the new flexibility in redemption is still in its infancy, some thoughts about how to manage Aviva's volunteer redemption have already come to the fore. In contrast to Hodge Lifetime, Aviva does not require a lower limit of 10,000 on your assets up to which no further refunds can be made without penalties. And Aviva has reacted well to the evolving needs of the infant boomers as the share offering enters the next phase of its evolution.
Click here to apply for an Aviva Flexible Lifetime mortgage offer with optional redemption. Please click on the following hyperlink to perform your FREE Aviva Lump Sum Payback calculations.