DRAWDOWN LIFETIME MORTGAGE
A drawdown lifetime mortgage is a secured loan against your property. It works exactly the same way as a lifetime mortgage except you have the ability to drawdown funds when and as required. The typical minimum release is £10,000 with an available drawdown facility set by the plan provider.
The main advantage of a drawdown lifetime mortgage is that you are only borrowing money when and as needed and you are only being charged interest on the money borrowed at that time. This can help reduce the amount of interest charged over the lifetime of the plan.
When you drawdown further money you are then charged interest at the prevailing rate at that time. Should you decide not to draw from the drawdown facility you will not be charged interest on the amount not used.