Drawdown Lifetime Mortgage Return to all services
How does it work?
Similar advantages and disadvantages as a regular lifetime mortgage, with additional issues that are unique to this kind of equity release scheme.
- You are in control of your money as you can release cash when it suits you, or you may be able to request a monthly income with no monthly payments to make
- You retain full ownership of your home
- You only pay interest on the amount of equity released from your home, so interest could accumulate more slowly than with a regular lifetime mortgage
- Drawdown Lifetime Mortgage plans may be available to younger people (aged 55+)
- Some Drawdown Lifetime Mortgage plans let you guarantee an inheritance for your family
- Interest rates are usually higher than on a standard lifetime mortgage
- Reduced amount available to leave as an inheritance
- Interest grows quickly as it is compounded
- You can't usually raise as much money through equity release with a drawdown lifetime mortgage as you could with a reversion plan, especially at younger ages
- If you want to increase the amount of equity released beyond the original amount agreed, you would normally have to apply for a further advance, which is not guaranteed
- If you repay the lifetime mortgage loan early, you may have to pay an early repayment charge
- Your tax position and certain state benefits may be affected
The initial advice it provided at our expense and without obligation to proceed. You will only incur a fee if you decide to go ahead and we do not ask for payment until the equity release completes. We can be paid by commission, a fee or a combination of both. Our typical fee is £995
LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT THERE MAY BE NO VALUE LEFT TO PASS ON.
THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.
For customers who are moving house or re-mortgaging we typically charge a fee of £295 in addition to any commission we receive from the lender.
Our fees range between £0 and £995 depending on your individual circumstances. We will let you know our fee before you agree to use our service. Some examples of where our fees vary from the typical charge are detailed below. These are in addition to any commission received:
- If you are buying a New Build property other than a shared ownership property, or with equity release we will not charge a fee.
- For Shared Ownership New Build purchases we charge a fee of £99.
- For Equity Release we charge a fee of £995