Similar to the standard lifetime mortgage, the drawdown lifetime mortgage also features the fact that there are no regular repayments to make and you continue to own 100% of your home. It differs, however, by offering increased flexibility by allowing you to not just receive a lump sum, but provides you with the option of releasing your cash over time, as and when you need it.
This means that you can accrue a reduced amount of interest and also limit or prevent any impact that the additional funds may have on means tested benefits, should this be of relevance to you. The total amount you borrow, plus any interest accrued, is only repaid once you pass away or permanently vacate the property e.g. move into long-term care.
As with all Equity Release schemes it is very important to get advice on whether the scheme is right for you. Please talk to us to find out more and ensure you get the advice you need.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.