Over recent years Lifetime Mortgages have become an increasingly popular form of Equity Release, prompting many providers to offer a variation of a lifetime mortgage called a drawdown lifetime mortgage. This allows you to release equity as and when you need it rather than taking a cash lump sum or regular income.
How is the money repaid under a Lifetime Mortgage?
The money you release is paid back, along with any interest that has built up, when the property is sold. This might be when you pass away or at such a time that you move permanently into long-term care. In the case of a joint application the sale happens when the last named person living in the property dies or moves into long-term care.
Applicants must be at least 55 years of age and must be the home owner.