Drawdown Lifetime Mortgages

An Introduction to Drawdown Lifetime mortgages

Lifetime mortgages have become a highly popular form of equity release over the past few years, prompting many providers to offer a variation of a lifetime mortgage called a drawdown plan which allows you to release equity as and when you need it, rather than taking a lump sum or regular income.

You can get an idea of how much equity you could release by enquiring through our contact form here.

A drawdown lifetime mortgage has similar advantages and disadvantages as a regular lifetime mortgage, including a few more that are unique to this kind of equity release plan.

The main difference with a drawdown plan is that you don’t request the full sum of money available to you immediately. Instead, you decide on a maximum amount of equity you want to release, and ‘drawdown’ the cash in stages when and if you want to. The minimum age is 55.

Lifetime Mortgages Apply For Equity Release

We offer a full advice and recommendation service, taking full responsibility for recommending a suitable plan.

A clear overview

Advantages & Disadvantages Of Drawdown Lifetime Mortgages

You can drawdown cash by making withdrawals as and when you need them, or you may be able to request a monthly income, subject to terms and conditions

You’re only charged interest on the amount of equity released, so interest could accumulate slower than a regular lifetime mortgage

You are in control of your money as you can release cash when it suits

You retain 100% legal ownership of your home

Drawdown plans may benefit younger lives

Some drawdown plans let you guarantee an inheritance for your family

All equity release schemes are regulated by the Financial Services Authority, including drawdown plans

Interest rates can be higher on a drawdown plan than they are on a standard lifetime mortgage

There are restrictions on the minimum amount you can release

The amount you can leave as an inheritance will be reduced

The interest applied to the drawdown mortgage, when no repayments are made, will increase the capital owed 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 repay the lifetime mortgage loan early, you may have to pay an early repayment charge

Committed to your

Financial Safety

Equity release is now safer than ever due to the FCA's regulation of Lifetime Mortgages and Drawdown Lifetime Mortgages, as well as the requirement for specialized qualifications for advisers. The Equity Release Council (formerly Safe Home Income Plans) protects plan holders and promotes safe equity release plans through their Code of Practice, which has been endorsed by Age Concern.

The Equity Release Company prioritises customer safety and only recommends plans that meet the standards and guarantees set by the Equity Release Council.

Some of your guarantees include:

The right to remain in your home for as long as you choose

The freedom to move to another property without financial penalty (subject to lenders’ criteria)

That you will never fall into negative equity no matter what happens to house prices in the future

Independent Legal Advice from a solicitor of your choice

Apply For Equity Release

We prioritise customer safety and only recommends plans that meet the standards and guarantees set by the Equity Release Council.

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Unlock your home's equity today

Whether you're looking to make home improvements, pay off debt, or simply enjoy your retirement to the fullest, equity release can help. Our team are here to guide you through the process and help you make the best decisions for your unique situation. Fill out our form today to get started.