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

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  • Equity Release organised by Toby was quick and efficient, ensuring all financial and legal details were fully understood thus helping us make this important decision. We would certainly recommend this company.

    Paul Dennison

  • Taylor James did my mortgage for me, when my bank had turned me down because they wouldn't lend on a high Rise block of flats… I approached another high street lender only to be turned down again… Taylor James was recommended to me & not only did they get me a great rate with another high street bank but they got the Offer out within 5 working days… Great rate and a stressless exercise… I couldn’t be more happier.

    Aneta Hoffman

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  • We have had the pleasure of securing a mortgage and life insurance through TJFS. The speed in response and efficiency in dealing with our queries has been exceptional.

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