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).
Drawdown lifetime mortgages are more flexible than lump sum plans, meaning you can 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.
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.
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.
Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home
With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care.
With a lifetime mortgage you’ll still retain full ownership of your home.
Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
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.