All new Aviva equity release customers can now choose whether to have any Early Repayment Charge (ERC) based on gilts, or select a fixed percentage charge.

The provider says its changes give advisers the option of selecting the early repayment charge type at outset that best meets their client’s needs.

Stuart Robinson, managing director of Aviva Equity Release, said: “We’re delighted to be able to offer our customers the option of choosing either the Fixed ERC or gilt-based ERC, depending on what best suits their circumstances. For many people, the value that lies in their home is a major part of their wealth and any planning about how to source income in retirement isn’t complete without taking this into account.

“The additional option introduced through these changes provides further flexibility to support advisers in tailoring advice to meet clients’ needs in retirement.

“The great news is that the ERC exemptions which apply to our gilt-based plans will also apply to our fixed based contracts. This means customers can still benefit from the many features we currently offer, such as the 10% per annum voluntary partial repayment (VPR) option.”

The fixed percentage charge works by reducing on a sliding scale over 15 years, starting at 9%. The choice between fixed and gilt-based must be made at outset as the ERC option can’t be changed. All subsequent borrowing will have the same chosen charging model applied.

All existing loans will continue to have any applicable ERCs calculated on their current gilt-basis.