Drawn Down Life Time Mortgage
Drawdown lifetime mortgages are a variation of lump sum lifetime mortgages.
Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The benefits of an Equity Release Plan
Most plans now feature much more flexibility than in the past. Here are just some of the features:
You may continue to own your home so you will benefit fully from any future increase in its value. There are also guarantees with some plans to make sure you never pass on any debt, or ‘negative equity’, in your estate — simply choose a plan that has an option to be ‘portable’ (so you can move home in the future).
Drawdown lifetime mortgages are a variation of lump sum lifetime mortgages, but with the following differences: you can carefully manage the withdrawal of funds as and when you require them; you only incur interest on the amount you actually borrow (so the interest that builds up is likely to be less than if you had taken all of the money in a single lump sum). You can also tie in the amounts you draw down with certain lifetime events or requirements.
Therefore, this is a more flexible way of borrowing and is widely recognised as the most popular form of equity release on the market today.
Choose from the information below to see how we could help you.