Drawdown Lifetime Mortgage
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What is a
drawdown lifetime mortgage?
With a drawdown lifetime mortgage, you don't have to withdraw the maximum amount available to you right away. You can take an initial amount that you need then in the future you can draw additional funds as and when you need them.
It is available to anyone over 55, regardless of your credit history. You will continue to own your property, and the amount is repayable when you die or enter full-time care. Some plans may be available that allow you to pay off the interest or the full amount during your lifetime.
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What customers say
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Extremely helpful
They were extremely helpful with my recent equity release. They sorted everything out for me and kept me up to date with weekly phone calls. They were extremely pleasant and friendly. They made the whole process very simple for me.
Charlotte Harris
Top service
Top service provided and equity release completed very quickly, would recommend for anybody to use the service to arrange equity release for them.
Barry Stones
First-class
Our adviser was first-class, making everything clear and concise. So we knew exactly how to proceed with our proposed equity release. The support from head office was also excellent throughout the whole process.
David Alexander
Very professional advice
Very professional advice, and ended up with a very good deal, which my research has indicated is the best currently available.
Claire Norton
Helpful at all times
Everything fully explained so you are always kept in the loop. They don't try and rush you or push any product on to you they just give you their advice. Very friendly and helpful at all times.
Connor Davis
Stress-free experience
The process of obtaining equity release has been a stress-free experience with a friendly and efficient service and carried out in a most professional manner.
Deborah Matthews
Answering your questions
Still unsure of a few things? We've got you covered with a few simple answers to some of our most frequently asked questions.
A drawdown lifetime mortgage is a type of equity release plan that allows you to access cash tied up in your home, known as equity, which you can take as and when you like – rather than in a single lump sum, which can prevent the interest compounding as quickly. The loan is typically repaid when you die or go into long-term care.
You can also pay monthly repayments to clear the interest and prevent it from being added to the loan. This means that you won't owe more than you originally borrowed.
Yes, you can still own your home if you take out a drawdown lifetime mortgage plan. If you opt for a home reversion plan, you sell all or part of your home but can stay in the property as a tenant, living rent-free.
To be eligible for equity release you must meet the following criteria:
- Be aged 55 or over. If you apply for equity release as a couple, the youngest applicant on the deeds of the property must also be 55 or above.
- Be able to pay off any outstanding mortgage or debts secured on the property with the funds raised from equity release.
- Own your own home in the UK, with a value of £70,000 or more.
- If the property title is leasehold, as opposed to freehold, the minimum remaining lease must be 75 years or more.
- Be a UK resident.
A drawdown lifetime mortgage does exactly what it says; combines the features of a drawdown with a lifetime mortgage, so you keep 100% of your home and access the funds as and when you like. There are also no monthly repayments with drawdown equity release. The loan is paid off typically when you pass away or move into long-term care.
Instead of taking all the money in one lump sum, you can withdraw funds as and when you wish from your 'reserve.' Interest is only charged on the amount you have withdrawn, not the entire amount available to you from your reserve, reducing how much you owe at the end of the mortgage term.
There aren't typically charges for making a withdrawal, and there will usually be a set interest rate at the time of each withdrawal. However, there can be minimum and maximum limits that you can take out in one go, which will vary between lenders.
Do you already have a drawdown lifetime mortgage plan?
Switching your existing drawdown lifetime mortgage plan could potentially save you thousands. Equity release rates have recently fallen to record low levels meaning you could benefit from a more competitive plan. You could also access more tax-free cash and new features with more than 700 plans now available.
Our selected advisers are ready to start your free review without any obligation to proceed, so get in touch today.
Other equity release plans available
Lifetime mortgage
Interest-only lifetime mortgage
Home reversion
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