Drawdown Plans
A drawdown lifetime mortgage is similar to a regular lifetime mortgage but with some extra features.
The major difference is that you don't request the full amount available immediately. You decide on the maximum amount of equity you want to release, then 'drawdown' the cash in stages.
Advantages drawdown mortgages
- Interest is only paid on the equity released saving you money in the long term
- You can drawdown cash as you need it and can effectively request a monthly income
- You can retain an inheritance for family with some plans
- Your home remains your property
Disadvantages drawdown mortgages
- Interest rates can be higher on a drawdown scheme than a standard lifetime mortgage
- If you exceed the amount of equity originally agreed you would normally have make a seperate application, which may not guaranteed
- There are restrictions on the minimum amount you can release
- You can't release as much equity with a drawdown lifetime mortgage as you could with a home reversion plan
- There may be an early repayment charge
Cestria Capital offer financial advice on a range of products, including drawdown lifetime mortgages, that will suit your individual circumstances. Contact us now for professional advice on a range of equity release solutions.