Borrowers can now make an unlimited number of repayments and are able to repay up to 10 per cent in total of their initial loan per year, and further borrowing if applicable.
The one-year time restriction has now been lifted to allow families to make a repayment the day after the loan has completed. The minimum repayment has also been reduced to £50.
Lifetime mortgage borrowers can access their reserve fund at any time and make an unlimited number of requests for additional borrowing.
The minimum sum accessible from the reserve is £2,000, and the minimum for additional borrowing.is £5,000.
Greg Neilson, managing director, retirement, at Aviva, said: “We know that people’s circumstances can change, and now customers have the security of knowing that they have a more flexible range of options available to them, whether they need to repay more often than planned, or borrow more to tide them over unforeseen events.”
The new features will be available to all customers who applied for their lifetime mortgage on or after 28 April 2014.