Drawdown Lifetime Mortgage

A Drawdown Lifetime Mortgage main difference from a regular lifetime mortgage is you do not need to take your agreed amount of lumpsum of money all in one payment.

You can drawdown cash from you fund in stages when required. This kind of scheme has both advantages and disadvantages depending on your situation.


  1. You have the control of when you would like more funds to be released or you may be able to request a monthly income instead
  2. You continue to have full ownership of your property
  3. Interest is only chargeable on the amount funds you have chosen to drawdown on. Potentially slowing the accrual of interest over time.
  4. Drawdown Lifetime Mortgage plans could be available to younger people (aged 55+)
  5. You can guarantee inheritance for your family on some drawdown products. Giving you extra peace of mind.


  1. The interest rates are generally higher than on a standard lifetime mortgage.
  2. The amount of inheritance available will be reduced.
  3. Interest increases quickly as it is compounded
  4. It is not guaranteed you could increase the amount of equity released beyond the original agreed amount.
  5. You could be subject to early repayment fees should you pay of the plan early.
  6. Tax position and benefit entitlement need to be taken into consideration and any impact a lifetime mortgage could have.