01484 605931 (Option 1)
Equity Release - Drawdown
Equity Release - Drawdown
What is Drawdown?
Let's start with the basics....
So you want to borrow money against your property with a Lifetime Mortgage. In reality, you probably know how much you need right now, but you probably don't know what extra you'll need over the next 20 years.
It doesn't make sense to borrow now, what you think you are going to need in the future, because you will start being charged interest on everything you have borrowed before you actually need it. So it's better leaving it in the house until you do need it.
This is where drawdown works. I suppose you think of it like an overdraft facility on your house This means that whilst you aren't using it, you aren't getting charged for it. When the time comes though, funds are available, generally released to you within a couple of weeks, at which point they will then start charging you interest.
By leaving the money in your house as long as you can, you have reduced the long term effect of compound Interest.
It also means that you should think carefully about how much you really need initially, knowing that there is the facility to borrow more money later. Borrowing money only when you need it and not having it sat in your bank account unnecessarily could save you thousands over the years.
Where to find us:
111 Bramston Street, Rastrick, Brighouse,
HD6 3AQ, UNITED KINGDOM
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT
Think carefully before securing other debts against your home. Your mortgage is secured on your home, which you could lose if you do not keep up your mortgage payments. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
KIS financial solutions is Authorised and Regulated by the Financial Conduct Authority (FCA No. 302556).