A lifetime mortgage “drawdown” plan allows a homeowner to release equity in amounts over time. This will start with an initial release, with the Lender agreeing a “drawdown” facility of equity that can be released in the future as and when the borrower needs further tax-free cash.

Unlike a traditional mortgage, a Lifetime mortgage does not have a requirement for a homeowner to make monthly repayments, instead the interest is added to the loan (known as compound interest) and rolled up over the lifetime of the mortgage. The loan plus any interest is repaid by your estate when the last person dies or moves into long term care.