A drawdown lifetime mortgage offers more freedom than a lump sum plan, allowing you to release money when you like. Firstly, you agree an overall sum of money you can borrow. You can take an initial lump sum and then withdraw smaller amounts when you need it (subject to minimum amounts).
As interest only accrues on the money you've released, you could potentially save a considerable amount in interest over the lifetime of the mortgage.
In addition to the features and considerations of a lifetime mortgage, the details of a drawdown lifetime mortgage are as follows:
Comparison between a standard lifetime mortgage and a drawdown option of £64,000 released over 15 years with an interest rate of 6.1% AER. For illustrative purposes only. The interest rate applied to drawdowns will be the interest rate at the time of the drawdown.
|Options||Initial advance||Drawdown year 5||Drawdown year 7||Drawdown year 9||Drawdown year 10||Interest charged (15 years)||Total owed (15 years)|
Your specialist equity release adviser will explain: