The flexible drawdown lifetime mortgage
As the name suggests, this is more flexible than the lump sum lifetime mortgage: it gives you the freedom to take the money when you like.
The lender first confirms an overall amount of money you can release, called the ‘reserve account’, and sets it aside for you. You then ‘draw down’ an initial lump sum from this, and extra amounts as and when you need them, until you’ve used up the reserve account (there’s normally a minimum withdrawal amount each time).
Because interest’s due only on the money you’ve drawn down, not on the full reserve account, you could save thousands of pounds in interest over the lifetime of the plan.
Things to bear in mind
- Choosing a flexible drawdown plan rather than a lump sum plan means your loved ones could end up with a greater inheritance.
- A flexible drawdown plan can help you manage your retirement finances better, and avoid losing out on mean-tested benefits.
- There are no monthly payments to make.
- You’ll continue to live in, and own, your home, and your estate will benefit from any house price rises.
- You can use the money for whatever you wish to do with it!
Contact us today to discover if a flexible drawdown lifetime mortgage could be for you.