lifetime mortgage drawdown

lifetime mortgage drawdown

LIFETIME MORTGAGE DRAWDOWN

A lifetime mortgage drawdown mortgage is a form of equity release, which enables individuals to unlock a considerable amount of cash from their home. Individuals need to be over 55 years old in order to qualify for a lifetime mortgage drawdown product. Individuals pursue lifetime mortgage drawdown plans in hope of gathering enough money to fulfil personal ambitions, to upkeep a their standard of living. Clients seeking a lifetime mortgage drawdown will benefit from the assistance of our expert advisers, as they will guide each client through the complex process of arranging a lifetime mortgage drawdown.

A lifetime mortgage drawdown is a by-product of lifetime mortgage schemes, which also include interest only, interest rollover and home income plans. A lifetime mortgage drawdown is different from each of these schemes. Instead of an individual taking out an initial lump sum of cash, a lifetime drawdown mortgage allows the mortgager to receive a series of minute cash lump sums. An agreement is made between the lifetime mortgage drawdown lender and the borrower on the maximum amount the borrower can borrow. An individual can obtain a smaller initial cash sum and then set up a cash reserve to withdraw further amounts whenever needed.

A lifetime mortgage drawdown is similar to an interest rollover scheme, in the sense that interest is charged on the money the individual has drawn down. Interest is calculated every month then added to the loan, which needs to be repaid subsequent to the termination of the contract. The contract is terminated under the condition that the borrower either dies, or lives at a care home for the remainder of their life. Our specialist equity release advisers are dedicated in finding an appropriate form of equity release to suit each of our clients needs, whether it is a lifetime mortgage drawdown, or alternative form of equity release.

Lifetime mortgage drawdown schemes can benefit potential borrowers, for instance, the individual retains full ownership of the property. The individual also has full control over their newly found capital, so they can release the cash whenever it suits them. Furthermore, it is possible for the individual to arrange a monthly income allowance, enabling a consistent flow of cash. Some lifetime mortgage drawdown arrangements enable the borrowers to guarantee inheritance to their children or beneficiaries.
Although there are many positive aspects to a lifetime mortgage drawdown, there are certain limitations which may hinder the individual’s decision to arrange a lifetime drawdown mortgage. Lifetime mortgage drawdown plans typically have a higher interest rate than standard lifetime mortgages. The interest that is applied to drawdown mortgages can quickly grow as the interest is compounded, resulting in a reduction among the equity remaining in the estate.
Lifetime mortgage drawdown plans may be a convenient method of raising capital or income for some individuals, however many risks accompany the arrangement. Arranging a lifetime mortgage drawdown mortgage may lead to compounded interest which may consequent in a drastic build up of mortgage debt. Our specialist advisers are on hand to help each client realised whether a lifetime mortgage drawdown is beneficial to their personal and financial needs, and if so, guide them through the steps they needs to take in order to arrange a lifetime mortgage drawdown.

Seeking a lifetime mortgage drawdown? Contact our team of expert advisers today.

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This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.