#HOME EQUITY DRAWDOWN FULL#

This benefits you quite substantially in the long run since you will only ever pay interest on the funds that you have already withdrawn.

#HOME EQUITY DRAWDOWN FULL#

You are approved for your equity release amount but instead of having to take it in one large lump sum payment and pay interest on the full amount starting right away, you can take smaller payments over time. The basics of a drawdown plan function quite simply. To this day, they remain popular and very commonly used by homeowners who want to enjoy the extra cash during their retirement but want the flexibility of using money only as needed. While still straightforward and easy to understand, the drawdown plan introduced concepts that were brand new to the world of lifetime mortgages. These plans were first introduced in 2004 and were an innovative addition to the equity release marketplace, immediately popular with homeowners who were unsure how they felt about receiving a one-time large lump sum. The drawdown plan brought lifetime mortgages to a new level of flexibility, leaving the rigidity of old schemes behind. When some people think of lifetime mortgage plans, they automatically conjure ideas of the lump sum plan and while that plan does still exist and does work well for some homeowners, things have changed quite a bit with the introduction of different plans, including the drawdown. Given the popularity of lifetime mortgages, home reversions, though still useful are not even close to as commonly used as lifetime mortgages. In fact, the most common equity release scheme for quite some time was the home reversion.

In years past, equity release schemes were far from flexible. In addition, many homeowners benefit from the functionality of the drawdown lifetime mortgage since they can help to eliminate any negative potential impacts on means-tested benefits. There most noteworthy feature is flexibility, which makes them very attractive to any homeowner who both wants to enjoy the extra cash an equity release can provide them but also has overall concerns related to the effects of interest. Drawdown lifetime mortgages are one of, if not the single, most popular form of equity release products currently available.

Home equity drawdown