Drawdown Lifetime Mortgage
What is a Drawdown Lifetime Mortgage?
This variation of a Lifetime Mortgage allows you to access the money more flexibly over time rather than all as a lump sum. This means you can release the tax-free cash as and when you need the funds in the future. You keep 100% ownership of your home and interest rates are typically fixed for life. As and when you take money from the Drawdown reserve facility, you will typically get this new drawdown money at the prevailing rate.
Features of a Drawdown Lifetime Mortgage
- You receive a tax-free lump sum of cash that you can spend on what you want.
- You can take a lump sum of money now for what you need and access further funds flexibly overtime. Thus, ensuring you only pay interest on money you have already taken and used.
- You keep 100% ownership of your home and will benefit from the potential future increase in property value.
- There are no committed monthly repayments required. You do have options which allow flexible repayments that can be used to combat the roll up of interest over the term of the plan.
- You get coverage from the Equity Release Council, meaning you can remain in the property for the rest of your life and you will also have the right to move.
- This also brings with it a no negative equity guarantee, meaning you can never owe more than the property value and therefore never leave any debt to the estate.
- There are options which allow you to ‘ring-fence’ and protect a percentage of your home, thus ensuring a guaranteed level of inheritance for the future.
Is this option right for you?
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Other Equity Release Products Available
There are other Equity Release options that may suit your specific needs. Speak with one of our qualified Equity Release Advisors to discuss your options further.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Interest Only
Lifetime Mortgage
With this option, you can choose to make regular monthly payments, to pay the interest in full or partially, allowing you to slow down or stop the roll up of interest entirely.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.
Home Reversion Plan
Under this option you will sell part or all of your home to the home reversion lender in exchange for a lump sum of cash. You no longer keep 100% ownership of your home.
Lump Sum
Lifetime Mortgage
The most popular form of Equity Release; a Lifetime Mortgage allows you to take a lump sum of tax-free cash from your home, whilst keeping 100% ownership.
Interest Only
Lifetime Mortgage
With this option, you can choose to make regular monthly payments, to pay the interest in full or partially, allowing you to slow down or stop the roll up of interest entirely.
Buy To Let
Lifetime Mortgage
A specialist type of Equity Release which allows you to gain access to a lump sum of tax-free cash from a rental/investment or second home property.
Home Reversion Plan
Under this option you will sell part or all of your home to the home reversion lender in exchange for a lump sum of cash. You no longer keep 100% ownership of your home.