With a Lifetime Mortgage Drawdown you can access your money with a lot of flexibility. Rather than just receiving a one-off lump sum, you have the option to release your cash over time, as and when you need it. Because you only pay interest on the cash that you have taken, these products can often prove to be a cost-effective method.
This is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.
The cash you release is tax-free and can be spent as you wish
Access your money with flexibility, you can release equity over time, as and when it suits you
It’s cost-effective because you only pay interest on the cash you choose to take out
You continue to own your home, thereby benefiting from any future increase in its value
There are no monthly repayments to make with a Lifetime Mortgage Drawdown
The ‘no-negative-equity’ guarantee ensures that you can never pass on debt to your estate
Products can allow you to protect a percentage of your property value so that your family could inherit a part of the property value
The size of the mortgage will grow over time, this is because of the roll up of interest
If you want to increase the amount of equity released beyond the original amount agreed, you would normally have to apply for a further advance, which would not be guaranteed and may be time limited. You would need to seek product T&Cs for more details
The amount that you will leave as an inheritance will be reduced each time you release money
If you wish to pay off the equity release product early, you may have to pay an early repayment charge, these differ from product to product
In some cases the lump sum of money that you release could affect your entitlement to any means-tested benefits that you may receive now or in the future