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Drawdown lifetime mortgages become popular

08/01/2008

New research has shown that drawdown lifetime mortgages are becoming more popular.

Safe Home Income Plans (Ship) estimated that the sale of equity release plans rose by 15 per cent throughout the third quarter of 2007. Looking at these figures, 51 per cent of these mortgages were drawdown plans.

Director of the intune group, Mark Gettinby stated that equity release schemes gave home owners a supplement income and helped repay other debts.

"More and more clients are taking advantage of Drawdown Lifetime Mortgages, which allow a client to take a small lump sum up front (minimum £10k) to cover immediate requirements and the ability to draw from a pre-agreed facility as and when required in the future. As the loans are designed to be held for a long period of time, the interest that accrues can be substantial."


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