This type of lifetime mortgage scheme will provide you with a cash lump sum and a drawdown facility that you may draw in minimum amounts of £2000 over the next 15 years.  You do not have to make any payments during the lifetime of the mortgage and the interest rate on the initial advance is fixed for the lifetime of the mortgage scheme.  The interest rate charged on any cash sum withdrawn from the drawdown facility will apply from the date you draw the cash sum for the remaining life of the loan and could be higher or lower than the initial interest rate.  All of the interest rolls up during the lifetime of the loan.

The borrower can apply to increase their maximum loan at any time.  There is no charge for the first 2 property revaluations.  The first 2 applications to increase the maximum loan are also free if the borrower's total loan will exceed their existing maximum loan on completion.

The interest rate is increased by 0.60% for loans over £600k.

These details are based on an example of a 70 year old male releasing £50,000 from a property value of £250,000. The plan is available subject to provider criteria. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.