Lifetime Mortgages with Drawdown or Reserve Facility work in the same way as Lump-sum Lifetime Mortgages but with added flexibility.

Other Features and Benefits are:

• You can choose to drawdown cash in stages after taking an initial release amount.
• Interest is only added to the sums you actually draw-down, and can be higher or lower than your initial release.
• Interest adds up much more slowly than if you took the full available amount initially.
• You still qualify for the downsizing option with many lenders
• You still qualify to make interest payments with many lenders
• You still qualify to make Voluntary Partial Repayments with many lenders.
• You can still ring-fence a portion of the property to protect the inheritance to family with many lenders.
• Some lenders still offer enhanced terms due to health and lifestyle which could mean more money, a lower rate or both.

If your personal circumstances change at short notice a Lifetime Mortgage with a drawdown or Reserve facility due to it’s flexibility, allows you to react quickly and effortlessly to changing circumstances.

Because interest accrues more slowly in general in a Lifetime Mortgage with a Drawdown or Reserve facility there is a greater likelihood (but not guaranteed) that some inheritance may be passed on at the end of the agreement.

Lifetime Mortgages with a Reserve or Drawdown facility can affect any entitlement to means tested benefits and can reduce the value of your estate overall. Your adviser will go over this in detail with you .

In most provider agreements there will be a minimum lump sum you are required to take as an initial release together with the drawdown or reserve facility. This ensures the lender actually has an agreement in place and will have some return for costs involved in setting the agreement up in the first place.

When deciding how much money to draw down initially, bear in mind that subsequent drawdowns may be charged at a higher interest rate.

The sums raised from an Equity Release Plan on your primary residence is tax-free. However, should the proceeds from your Equity Release be invested in a business or investments which attract positive financial returns or interest, these may be subject to taxation. Please consult a specialist tax adviser in these circumstances.

If and when you decide to move forward with your application, our team of advisors will assist you and answer any further questions you might have.

Take you time and don’t ever be rushed into making a decision, whatever your requirements BRS Equity Release will be there to assist you every step of the way.