Access further funds from your drawdown lifetime mortgage
If you chose to release your funds as part of a drawdown facility, you may still have money left to access. After receiving your initial lump sum, you can withdraw the remainder of your release in smaller withdrawals as and when needed, subject to minimum amounts. Please remember that a lifetime mortgage is a loan secured against your home and is subject to compound interest meaning the amount owed can grow quickly. Also, equity release will reduce the value of your estate and can affect your entitlement to means tested benefits.
You may wish to speak with your equity release adviser first before contacting us to see if using your drawdown facility is the right choice for you at this time, or if you’re unsure about your options.
If you still have funds available and wish to drawdown some or all of the facility, please follow the instructions below. A lifetime mortgage may result in limited or no equity remaining and will reduce your financial options in the future.
How to make a drawdown withdrawal
When it comes to requesting a withdrawal from your drawdown lifetime mortgage, simply get in touch with a member of our customer service team by emailing [email protected] or calling 0800 188 4815. We’ll then be in touch to confirm your identity and if your drawdown facility is still available, we will begin the withdrawal process.
Drawdowns are not guaranteed. For example, if the drawdown facility is no longer available on your plan or it is now empty, you’ll no longer be able to access further funds unless you choose to apply and are eligible for a further advance.
Please note that by withdrawing from your drawdown, these additional funds will be subject to the prevailing interest rate at that time, which may be higher or lower than the interest rate on your initial release amount. To see if additional charges may apply, please refer to your tariff of charges document found in your offer pack.
Request a withdrawal
Requesting a drawdown on behalf of someone else
Only someone with a Lasting Power of Attorney can make withdrawals on behalf of someone else and we’ll need to verify their identity before the funds can be released. If you’re looking to request a withdrawal on behalf of someone else, please get in touch with a member of our customer services team by emailing [email protected].
Request a withdrawal on behalf of someone else
If their drawdown facility is now empty, you’ll no longer be able to access further funds unless you choose to apply and they are eligible for a further advance, subject to criteria.
Requesting a further advance
After taking out your lifetime mortgage, you may have the option to take a further advance. This could allow you to access further funds and increase your lifetime mortgage loan, if the following applies:
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You didn’t take the maximum loan amount available to you
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You did take the maximum loan amount; however, your property has increased in value since taking out your lifetime mortgage
Before making a decision, you must first seek qualified equity release advice to ensure it’s right for you. You can do this by speaking with your equity release adviser. An advice fee may apply. Advice fees vary so we recommend discussing this with your adviser if you are unsure. If you’re eligible for a further advance and this option is best suited to your circumstances, your adviser will make a request on your behalf and help you complete and submit an application form. After receiving your application form, our team will begin processing your request.
Any fees involved for your further advance will be declared in the tariff of charges document found in your offer pack, of which your adviser will also be aware and will discuss these with you.
Please note that taking out a further advance will increase your total cost of borrowing, any further advance funds will be subject to the prevailing interest rate at that time which may be higher or lower than your current interest rate.
Things you should consider
- Equity release is a loan secured against your home and is subject to compound interest meaning the amount owed can grow quickly.
- Equity release will reduce the value of your estate and can affect your entitlement to means tested benefits.
- A lifetime mortgage may result in limited or no equity remaining and will reduce your financial options in the future.
- An advice fee may apply. Advice fees vary so we recommend discussing this with your adviser if you are unsure.
FAQs for accessing further funds
What if I need a new equity release adviser?
If you need to find a new equity release adviser, we recommend searching the Equity Release Council's database of registered equity release adviser members. All Equity Release Council members agree to abide by Equity Release Council rules, guidance and standards, and have signed up to the Council's Statement of Principles.
How will this affect my total cost of borrowing?
As you’re requesting to borrow more funds, you’ll owe more on your lifetime mortgage. It’s important to be aware of how accessing further funds can impact your total cost of borrowing, whether that be through a drawdown facility or a further advance.
When releasing further funds, the amount you release becomes subject to the prevailing interest rate at the time, not your existing rate. Since your interest is compounded and added to your total balance each year, your new interest rate could have a significant impact over the lifetime of your lifetime mortgage plan.
Still have questions?
If you still have questions, we’ll be happy to help. Call 0800 188 4815 to speak with our customer support team.