Safe Home Income Plans (SHIP) says lately more homeowners are opting for drawdown lifetime mortgages as opposed to lump sum lifetime mortgage equity release plans.
A flexible drawdown lifetime mortgage works just the same as a lump sum lifetime mortgage, except they have a regular cash reserve or draw down option allowing amounts to be withdrawn as desired up to a specified amount of years, or until the cash reserve has been used up, with interest only charged when withdrawals are made.
The appeal of a lifetime mortgage with flexible cash release is that the money can be used as an added extra income. Homeowners who do not wish to invest in anything in particular but want to live a more comfortable life, find that a drawdown lifetime mortgage provides enough to cover all the bills with enough left over for treats such as regular holidays.
With pension pots dwindling and the cost of living rising, it is hardly surprising that more and more homeowners are choosing a flexible drawdown lifetime mortgage to top up their income in retirement. A whole of market independent equity release adviser will provide advice on which is the best plan to choose and ensure a flexible draw down lifetime mortgage is the best option, also exploring other types of equity release such as lump sum lifetime mortgages and home reversion plans as well as alternative solutions.
Equity release may involve a lifetime mortgage or home reversion plan.
To understand the features and risks, please ask for a personalised illustration.