Skip to main content
FOLLOW US:
Call Us Now 01622 831855
MENU
  • Home
  • Our Company
  • Why Indigo?
  • TCF
  • Our Adviser
  • Privacy Policy
  • Privacy Notice
  • Contact Us
  • Mortgages
    • Introduction to Mortgages
    • Mortgage Repayment
    • First Time Buyer
    • Remortgaging
    • Buy-to-let
    • Standard Variable Rate Mortgages
    • Fixed Rate Mortgages
    • Tracker Mortgages
    • Cashback Mortgages
    • Offset Mortgages
    • Second Charge Mortgages
    • Self Build Mortgages
  • Life Assurance
    • Introduction to Life Assurance
    • Level Term
    • Increasing Term
    • Decreasing Term
    • Renewable Term
    • Convertible Term
    • Whole of Life
    • Family Income Benefit
  • Health Insurance
    • Introduction to Health Insurance
    • Private Medical
    • Critical Illnes
    • Income Protection
  • General Insurance
    • Household
    • ASU
    • Redundacy / Unemployment
  • Equity Release
    • Introduction to Equity Release
    • Types of Equity Release
    • Lifetime Mortgage
    • Home Reversion Plan
    • Drawdown Lifetime Mortgage
    • Home Income Plan
    • Costs
  • Business Insurance
    • Introduction to Business Insurance
    • Keyperson
    • Share Protection
    • Income Protection
  • Mortgage Calculators
    • Mortgage Borrow
    • Mortgage Repayment
    • Overpayment
    • Stamp Duty
  • Research Links
  • Mortgages
    • Introduction to Mortgages
    • Mortgage Repayment
    • First Time Buyer
    • Remortgaging
    • Buy-to-let
    • Standard Variable Rate Mortgages
    • Fixed Rate Mortgages
    • Tracker Mortgages
    • Cashback Mortgages
    • Offset Mortgages
    • Second Charge Mortgages
    • Self Build Mortgages
  • Life Assurance
    • Introduction to Life Assurance
    • Level Term
    • Increasing Term
    • Decreasing Term
    • Renewable Term
    • Convertible Term
    • Whole of Life
    • Family Income Benefit
  • Health Insurance
    • Introduction to Health Insurance
    • Private Medical
    • Critical Illnes
    • Income Protection
  • General Insurance
    • Household
    • ASU
    • Redundacy / Unemployment
  • Equity Release
    • Introduction to Equity Release
    • Types of Equity Release
    • Lifetime Mortgage
    • Home Reversion Plan
    • Drawdown Lifetime Mortgage
    • Home Income Plan
    • Costs
  • Business Insurance
    • Introduction to Business Insurance
    • Keyperson
    • Share Protection
    • Income Protection
  • Mortgage Calculators
    • Mortgage Borrow
    • Mortgage Repayment
    • Overpayment
    • Stamp Duty
  • Research Links
  • Home
  • Drawdown Lifetime Mortgage

Drawdown Lifetime Mortgage

EQUITY RELEASE WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.

How does it work?

Similar advantages and disadvantages as a regular lifetime mortgage, with additional issues that are unique to this kind of equity release scheme. The main difference is that you don't request the full sum of money available to you immediately. Instead, you decide on a maximum amount of equity you want to release, and 'drawdown' the cash in stages as and when required.

ADVANTAGES

  1. You are in control of your money as you can release cash when it suits you , or you may be able to request a monthly income with no monthly payments to make
  2. You retain full ownership of your home
  3. You only pay interest on the amount of equity released from your home, so interest could accumulate more slowly than with a regular lifetime mortgage
  4. Drawdown Lifetime Mortgage plans may be available to younger people (aged 55+)
  5. Some Drawdown Lifetime Mortgage plans let you guarantee an inheritance for your family

DISADVANTAGES

  1. Interest rates are usually higher than on a standard lifetime mortgage
  2. Reduced amount available to leave as an inheritance
  3. Interest grows quickly as it is compounded
  4. 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 is not guaranteed
  5. If you repay the lifetime mortgage loan early, you may have to pay an early repayment charge
  6. Your tax position and certain state benefits may be affected
Call Us Now 07860 445162 Send Us An Enquiry

Indigo Mortgage and Financial Services Ltd is an appointed representative of Quilter Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority.

Indigo Mortgage and Financial Services Ltd is registered in England and Wales, Company No: 11707531. Registered Address: 2 Lovelace Close, Abingdon, OX14 1XW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Buy to let mortgages are not regulated by the Financial Conduct Authority.

© Copyright 2021 Mortgage Pro. All Rights Reserved.

Design and Development by Mortgage Pro