How should I choose a drawdown mortgage provider?
Once you’ve decided that a mortgage drawdown is going to be a viable option for you, it’s important to research and choose providers carefully. With so many companies out there, it can be hard for homeowners to make decisions.
Each company will have different terms and interest rates– some of which may suit you – but others won’t. Think about your specific requirements and thoroughly consider all the options available based on your individual requirements.
Keep in mind that this has to work for you and should be aligned with your long term personal objectives and circumstances.
Ask for detailed information from each and take a look at impartial testimonials and reviews online, as these should give you a clearer picture of how easy it is to deal with the provider. It’s also worth chatting to family and friends and asking for help if you need it, before agreeing to your lifetime mortgage. This is because drawdown lifetime mortgage schemes will reduce the proceeds they receive from your inheritance, since a share needs to be paid to the lender to pay back the loan amount.
All drawdown lifetime mortgage providers should be able to provide detailed literature and tailored advice depending on your situation – so after finding several online with positive reviews, it’s worth gathering specific information from each before making a final decision.
Considering later life financial options and care provision? Find more dedicated resources and detailed articles on this site.
What is the best equity drawdown plan?
It is essential that you use a specialist to secure an equity release scheme, including a lifetime mortgage. They will ensure that your best interests are always protected, and also ensure that you don’t waste thousands of pounds on a bad deal, for example, due to a bad interest rate.
An independent equity release adviser gives you peace of mind that you are borrowing safely, and can explain exactly what interest repayments you will need to make. However, they will charge an advice fee.
There are also other charges to consider when browsing the equity release supermarket. These include administration fees and valuation fees (to estimate the value of your residence).
What are the other types of equity release I can consider?
Lifetime mortgages are the most popular type of equity release.
Alternative options include the use of a Standard lifetime Mortgage or Home Reversion plans. We recommend that you read up on these too to ensure you are fully aware of the options available to you. Typically, the amount you are entitled to depends on the value of your home, as the tax free cash you receive is a percentage of your estimated property value.