Frequently Asked Questions

Am I eligible for a Drawdown Lifetime Mortgage?
To qualify for this type of equity release scheme, the youngest homeowner must be 55 years or older and resident in the UK. The property must be your main residence, also in the UK, and with a minimum valuation of £70,000. It must also meet the lenders underwriting criteria, such as property type & construction.
Note - different lenders have different criteria. Thus speak to our independent advisers on 0800 689 3149 to help clarify eligibility.
What's the difference between Lifetime Mortgages and Drawdown Lifetime Mortgage plans?
A lifetime mortgage is a suite of different types of equity release schemes incorporating Drawdown, Enhanced, Interest Only and Voluntary Payment Plans. The drawdown plans differ as rather than taking the whole release of equity in one lump sum, they can be taken gradually over time. As you are only charged interest on the amount actually withdrawn, the remainder still held by the lender is not, thus you will save much interest over the long term by taking only what you need.
How much equity can I release from my property?
The maximum equity release possible is based on certain criteria, personal to you. Firstly, the age of the youngest homeowner will be taken into account, which must be over the minimum of 55. Next the property value will need to be included in the equity release calculation as the maximum percentage released is based on this figure. Finally if their is any poor health with the youngest homeowner, then certain enhanced lifetime mortgage companies will take this into consideration when assessing the maximum lump sum.
Why is drawdown equity release the most popular plan?
What are the advantages of Drawdown Lifetime Mortgages?
How much, & what are the costs associated with setting up a Drawdown Lifetime Mortgage Scheme?
Can you borrow as much on a Drawdown Scheme than a Lump Sum plan?
Which equity release companies provide Drawdown Lifetime Mortgages?
What are the rules as to how much can be withdrawn via drawdown?
Is the Drawdown facility guaranteed for the future?
What are my options when my cash reserve facility has been fully drawn down?
What is the minimum drawdown amount that can be taken?
How much does each individual drawdown withdrawal cost?