Drawdown Mortgage Calculator (Oct 2021)
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Try Our FREE Drawdown Equity Release Mortgage Calculator for Oct 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
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.
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 is 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 Oct 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 Oct 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
Got Questions? Check These First
What’s A Drawdown Mortgage?
A drawdown mortgage is a type of equity release schemes that enables you to untie the funds in your home. You pay the mortgage loan when you die or move into permanent care.
Unlike other mortgage plans, the drawdown mortgage schemes allow you to gradually unlock some the capital in drawdowns – meaning, as monthly income.
Why is A Drawdown Lifetime Mortgage Worth It?
Yes, it’s. The lifetime mortgage option enables you to access the capital slowly. Unlike with the standard mortgages, with the drawdown equity release option, your interest grows gradually, thus allowing you to save more cash.
It’s also imperative to note that even if you take out a smaller amount over a lengthy period, your money will always remain tax-free.
How Does A Drawdown Lifetime Mortgage Work?
Well, the equity release scheme allows you to unlock the value tied up in your estate. After checking your qualifications, the equity release company will determine the overall sum of cash you can borrow, based on the youngest homeowner’s age, state of health, residence’s location, and property value.
After that, you’ll receive the initial lump sum, and the rest will stay in a cash reserve facility, ready for you to ‘drawdown’ – meaning you’ll get it as regular income.
How Much Can You Borrow with the Drawdown Mortgage Calculators?
Well, like any other equity release product, with the mortgage drawdown calculator, you have to input your property’s value, which has to be in the UK and worth more than £70,000. You’ll have to type in the age of the youngest proprietor, who has to be 55 years and above.
Lastly, you’ll have to input the postcode of your estate, which must be within the remits of the UK. These are the three standard criteria that plan providers use to figure out how much you can borrow.
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.
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