Home Equity Release Drawdown lifetime mortgages

Drawdown lifetime mortgages

If you're looking for an equity release plan which offers more freedom than a lump sum plan, a drawdown lifetime mortgage may suit your needs.

What is a drawdown lifetime mortgage?

With a drawdown lifetime mortgage, like a lump sum lifetime mortgage, there is an overall sum of tax-free cash you could release from your home.

However, with a drawdown lifetime mortgage, from that overall amount, you can take an initial lump sum, and then release smaller amounts when required (subject to minimum amounts).

Why choose a drawdown lifetime mortgage

Drawdown lifetime mortgages offer more freedom than a lump sum plan, allowing you to release money when you need it and adapt to your changing needs in retirement.

A drawdown lifetime mortgage could also save you money over the lifetime of your plan, as interest only accrues on the funds you draw down once they are released so you'll have less of it to pay. If you choose to make a drawdown, the funds will be subject to the prevailing, fixed interest rate at the time which may be higher or lower than your original interest rate

By choosing a drawdown plan, it could be a way to organise your future finances – you could use it to organise your finances to reduce the effect on any means-tested benefits you receive.

Your lender may have the option to withdraw your drawdown facility

How do I know if a drawdown lifetime mortgage is for me?

Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers to offer a range of suitable products designed to meet your needs. Your adviser will talk you through your options and recommend a plan based on what’s important to you.

Find out more

There are two forms of lifetime mortgages which let you receive your tax-free funds in two different ways. These are lump sum and drawdown. With our specialist advice, why not let us help you work out the approach that’s most suitable for you and your personal circumstances.

Find out how much tax-free cash you could release from your home with our simple online calculator. Or call on 0800 188 4826 and one of our team will be able to answer any questions you may have.

The benefits

You can unlock cash from your home, tax-free, to help meet your needs in later life
You’ll always retain full ownership of your home and can stay in it for as long as you wish
You can choose to make reduced or no monthly repayments to suit your circumstances
You’ll never owe more than your home’s worth
You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Potential drawbacks

Your equity release adviser will also outline the following important things to think about:

A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
Equity release may leave you with limited or no property equity remaining
Equity release will reduce your financial options in the future
A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

Your other options

Before deciding on equity release, our advisers will make sure you're aware of some of your other later life finance options such as retirement interest-only or retirement payment mortgages.

See if equity release is right for you

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Compound interest explained
How much does equity release cost?

Things to consider

Because we play by the book we want to tell you

Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
Mortgage Advice Bureau Later Life offer lifetime mortgage products only from a carefully selected panel of providers.
We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.
As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.