Are you aged 55 or over and looking to borrow cash from the equity of your home? Our experienced mortgage advisers can offer drawdown lifetime mortgage advice and explain to you how this kind of mortgage can let you access the equity that is tied up in your home.
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
- 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
- You retain full ownership of your home
- 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
- Drawdown Lifetime Mortgage plans may be available to younger people (aged 55+)
- Some Drawdown Lifetime Mortgage plans let you guarantee an inheritance for your family
DISADVANTAGES
- Interest rates are usually higher than on a standard lifetime mortgage
- Reduced amount available to leave as an inheritance
- Interest grows quickly as it is compounded
- 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
- If you repay the lifetime mortgage loan early, you may have to pay an early repayment charge
- Your tax position and certain state benefits may be affected
Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.
Our mortgage experts will take you through your options and discuss how this kind of mortgage can work for you.
Our advisers are based in Croydon and help clients in the surrounding areas, including: Warlingham, Westerham, Woldingham, Caterham, Oxted, Banstead, Coulsdon, and Purley.
We offer independent mortgage advice that is open, honest, and transparent.
