Drawdown Mortgage Calculator (Dec 2021)

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Try Our FREE Drawdown Equity Release Mortgage Calculator for Dec 2021

Discover now how much cash could be tied into your home with our drawdown equity release mortgage calculator!

If you’re not careful, you could miss out on an incredible opportunity to live a financially stress-free retirement with one of the best equity release products available on the market.

We’ll help you discover:

  • How to use our drawdown equity release calculator.
  • Why you should try to use it.
  • The pros and cons of drawdown equity release mortgages.

At SovereignBoss, we pride ourselves on supporting UK citizens with up-to-date information on all things equity release. It’s never too late to start considering your future.

Now, let’s discover what you must know about our drawdown equity release mortgage calculator right now.

A Quick Guide to Using Our Drawdown Lifetime Mortgage Calculator

It’s simple!

All you need to do is select the estimated value of your home. From there, you’ll provide us with your basic details, and your quote will be sent via email. The whole process will take about 8 seconds.

The amount you’ll receive is the maximum estimate of what you could be eligible to unlock.

Take note:

The final offer you’ll receive from your lender will be based on a detailed and up-to-date property valuation¹. The condition of your property will be considered as it’s essentially collateral for their loan.

Therefore, while the calculator will give you an estimate, it may differ from the final loan offer that you’ll receive.

What's a drawdown lifetime mortgage?

A drawdown lifetime mortgage is a fantastic equity release product that allows you to unlock equity into a drawdown facility that you’ll then take cash from, as and when you need it.

It’s available for homeowners in the UK who are aged 55 or older. In addition, your minimum property value must be £70,000. 

Note that the facility does come with minimum amounts that you can withdraw each time. You’ll need to inquire about this from your financial adviser.

Like most equity release products, the loan, plus interest, is repaid from the sale of your home when you pass away or move into a long-term care facility.

How does drawdown equity release work in Dec 2021?

With a drawdown lifetime mortgage, the equity you’ll unlock is tax-free, and you’ll only pay interest on the funds you withdraw. Any money that sits in the drawdown facility won’t be subject to interest charges.

Pro Tip: To stop your interest² from compounding quickly, avoid unlocking cash you don’t need. Only withdraw funds that you’ll likely use in the foreseeable future.

13 Pros and Cons of a Drawdown Lifetime Mortgage

Like with all financial products, there are pros and cons of a drawdown lifetime mortgage that you’ll need to consider. Luckily, we’re here to share what you must know so that if you decide that a drawdown is right for you, you can unlock cash with complete confidence.

With that, here are the 13 advantages and disadvantages of a drawdown lifetime mortgage:

7 Advantages of a Drawdown Lifetime Mortgage

  • The cash you unlock is tax-free.
  • You’ll only be charged interest on the money you unlock from your drawdown facility.
  • Interest rates are currently at an all-time low in Dec 2021.
  • The Equity Release Council³ regulates the industry. This includes offering a ‘no negative equity guarantee.’
  • With the growth in popularity, you might be able to secure a fantastic deal.
  • You can unlock smaller amounts when you need them.
  • No loan or interest repayments are required during the course of your lifetime.

6 Disadvantages of a Drawdown Lifetime Mortgages

  • There is a minimum amount you can withdraw each time.
  • It might limit who can live with you.
  • You will leave a reduced inheritance.
  • There are costs involved.
  • The LTV you receive will be lower than what you’d get from selling your home. This could be between 25% and 35%.
  • The interest can roll up quickly.

Got Questions? Check These First

What’s A Drawdown Mortgage?

Why is A Drawdown Lifetime Mortgage Worth It?

How Does A Drawdown Lifetime Mortgage Work?

How Much Can You Borrow with the Drawdown Mortgage Calculators?

In Conclusion

Our drawdown equity release calculator is one of the latest, and most accurate tools to help estimate how much cash could be available in your estate.

In addition, we’re offering a FREE no-obligation call from an expert at UK’s #1 equity release provider, Age Partnership.

Once you have your estimate, you should get in touch with a whole market independent financial adviser who’ll be able to go through all your options and find you the best deal to suit your and your family’s needs.

Finally, while equity release is a fantastic financial tool, there are some risks involved. You should always consider the equity release alternatives before making your final decision.

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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HOW MUCH EQUITY CAN YOU RELEASE?

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rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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Equity Release Calculator

Value of Your Home?

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🔒 100% Secure & Fast. Takes Just 8 Seconds.

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