The drawdown equity release scheme is the most popular form of lifetime mortgage for a reason. Simply put, drawdown schemes allow you to take your tax free cash in stages, rather than in one lump sum.
This form of equity release plan works by the provider creating an initial cash reserve facility, calculated solely on your age & property value. You then decide how much of the cash is required from the outset. The amount you don’t take is left in the reserve facility and stays there, interest free, until you require any additional funds in the future.
As interest is only charged on the money withdrawn, the equity release drawdown plan can save you and your estate £1000’s over the long term.
Drawdown can be particularly beneficial if only a small amount is required initially, but its known there will still be a need for additional funds in the future. This flexibility provides people with the peace of mind knowing that should an emergency arise, they always have a financial backup plan.
If you have any questions on any of the deals, or wish to speak to an equity release adviser please call Freephone 0800 678 5159.