Equity Release Calculator For Drawdown Lifetime Mortgages
Try our free equity release calculator for drawdown lifetime mortgages
How to use our drawdown equity release calculator
It couldn’t be simpler to use our drawdown calculator for equity release. To get an instant estimate of the maximum you could borrow on a drawdown lifetime mortgage, simply add in the following to our equity release calculator:
- The value of your property (this must be a minimum of £70,000 and in the UK)
- The age of the youngest homeowner (they must be at least 55 years old)
- Your postcode
With our equity release calculators, only your property details are then required for you to see how much you could release from a drawdown lifetime mortgage. Once you’ve filled in the information, your drawdown equity release calculator results are shown instantly in an easy-to-read table.
You can also find personalised calculations for all other eligible equity release plans when you use smartER, an innovative equity release tool that provides real-time calculations across the entire market.
An introduction to drawdown lifetime mortgages
Drawdown lifetime mortgages are one of the most popular types of equity release plans.
Once the lender has determined the maximum they will lend you, this money is placed in a ‘cash reserve’ facility with them. Initially you must borrow a minimum of £10,000 from your ‘cash reserve’. After that, you are free to borrow as much as you like, as many times as you like – until your cash reserve is fully used.
The minimum additional borrowing is typically £500, which means you can take smaller amounts for less expensive items, without having to take more than needed.
There is no additional charge for making withdrawals, however, you’ll be charged the current interest rate, which may be different from the interest rate at the time you first borrowed. Once your drawdown request is received and processed by the lender, the money is usually paid into your bank account within a couple of weeks.
As interest is only charged on the amount you borrow (not on money in your cash reserve), you can reduce the final amount of interest to repay, if you borrow in a series of drawdowns over time - rather than one large lump sum.
If you are claiming any means tested benefits, a drawdown lifetime mortgage may not affect your claim, as the amount borrowed could be managed to keep under eligibility thresholds. Your local Equity Release Supermarket adviser will be able to talk this through with you in detail.