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.