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Lifetime mortgage drawdown

Could you release more money with your lifetime mortgage?

Our Lifetime Mortgages give you the option to take less than the maximum amount you're eligible for when you take out the initial loan. If you’ve chosen to take less, you may be able to borrow more as and when you need it.

The difference between the initial cash sum you've taken and the maximum amount you could take is called your Drawdown Facility. If you have a Drawdown Facility available, it’ll be shown on your annual statement and you could apply by following the instructions below.

Any additional borrowing will be secured against your home and will be based on the terms available from us at the time you apply.

If you have no Drawdown facility available and the value of your home has increased sufficiently since you took out your Lifetime Mortgage you may be able to release more equity through a Further Advance.

There is no Drawdown Facility on our Payment Term Lifetime Mortgage.

How interest rates affect your mortgage

The interest rate on your initial loan is fixed for life meaning it won’t change even if rates fall in the future. However, the amount you owe can increase quickly over time and the higher the interest rate on your loan, the faster this will happen.  

 If you didn’t choose to pay Monthly Interest Payments on your lifetime mortgage or have stopped making Monthly Interest Payments, the interest will be added to your lifetime mortgage each month and ‘rolled up’. This means that interest is charged on your loan amount plus any interest already added. This is also known as ‘roll up interest’ or ‘compound interest’. Further information can be found in our roll up interest guide.

The illustrations below show how different interest rates affect the amount owed and remaining equity.

They're based on a property value of £300k and a loan of £50k over 20 years.

Remember these graphs are a guide. They don't include previous borrowing and assume house prices stay the same over the 20 years. The number of years that apply to you may vary according to your individual life expectancy.

Example of drawdown

Remember, the higher the interest rate, the greater the affect of roll up interest over time.

When you’re taking more money from your Drawdown Facility there’s a few things to consider, and you may want to go back to your financial adviser for guidance.

  • A different interest rate may apply to each drawdown amount you take and may be higher or lower than the interest rate on your initial loan. The rate will depend on the interest rates available for your lifetime mortgage, on the date you apply for the drawdown. We’ll confirm the interest rate in the Offer of Loan we send you for the drawdown.
  • You should only release what you need at the time from your Drawdown Facility. As you'll pay compound interest from the day we pay the money to you.
  • Your Drawdown Facility will reduce by the amount you drawdown so there will be less available for your future needs.
  • The minimum amount you can drawdown online is £1,000. If you have less than £1,000 remaining in your Drawdown Facility you will need to call us on 03330 048444. Monday to Friday 8.30am to 5.30pm. We may record and monitor calls

If you apply online for a drawdown, we’ll send the Offer of Loan to you through DocuSign (our secure email portal). 

If your lifetime mortgage is in joint names, then you'll need to complete the drawdown request form with the joint account holder.

To complete the drawdown request please have the following information ready:

  • Loan Account Number: You can find this on your initial Offer of Loan document or annual statement
  • Your contact details: Home address, telephone number and email address. If you’re applying online then your email address is essential for us to process the drawdown.
  • Purpose of drawdown: Information on your intended purpose for the drawdown you request, with details of how much you intend to use for each purpose. For example, Home improvements £5,000 (sofa £2,000, boiler £3,000)
  • Bank account details: Where you would like the drawdown paid.

The simplest way to request a drawdown is online. You can apply for a drawdown in 5 simple steps 

Step 1:- Complete the online application form. This will take about ten minutes to complete, you’ll need to share your email address and have the required information to complete the application. If this is a joint account you need to complete it together.

Step 2:- When you’ve submitted the drawdown application, we’ll review the information you’ve provided. If everything is clear and acceptable to us, we'll send you an Offer of Loan for the drawdown. If we need further details we’ll call you back within two working days to discuss your application.

Step 3:- When you receive the Offer of Loan, please check all the details, sign the document and return to us. If this is a joint account you’ll both need to sign.

If you have a joint lifetime mortgage account, one account holder will need to sign and return the offer of loan before the other will receive their email to do so. Each account holder must use a different electronic signature. If you have one email address, emails for each person will be sent to the same address.

You will be able to sign your Offer of Loan online via a secure platform. Additional guidance and support can be found on How do I sign a DocuSign.

Step 4:- When we receive your signed Offer of Loan we’ll send you a confirmation letter and pay the drawdown amount into your bank account.

Step 5:- You’ll have access to the money you asked for and we’ll keep you updated through your annual statement of any drawdowns taken and your remaining Drawdown Facility.

You can also apply for a drawdown by calling us on 03330 048444. Monday to Friday 8:30am to 5:30pm. We may record and monitor calls.

Ready to apply for a drawdown?

You can request additional sums of money from your Drawdown Facility by completing our online application form. Please remember, availability of the Drawdown Facility is not guaranteed.

Ready to apply for a drawdown?

If you would like to apply to take a drawdown from your Drawdown Facility and have the required information available, it only takes about ten minutes to complete an online application. Please remember, availability of the Drawdown Facility is not guaranteed.

Common Questions

Your annual statement will detail how much you have left in your Drawdown Facility or for a more current figure you can contact us on 03330 048444. We may record and monitor calls. Or you can email us at: customerservices@landghomefinance.com.

If you’re contacting us by email please remember not to send any personal, financial or banking information because email is not a secure method of communication.

If you need more money and have no remaining Drawdown Facility you may be able to take a Further Advance. This is additional borrowing on top of your existing lifetime mortgage.

Applications for further advances may be considered 12 months after completion of your lifetime mortgage. Any further borrowing must be on the same basis as your existing lifetime mortgage  and you will need to speak to your financial adviser. The interest rate may be different depending on interest rates available at the time you request a further advance. 

Call our dedicated Customer Services team on 03330 048444 to enquire about a further advance. We may record and monitor calls.

The availability of your Drawdown Facility is not guaranteed. When you apply for a drawdown we review your current circumstances and may refuse the drawdown request or withdraw your Drawdown Facility if your circumstances have changed significantly. For example, if there has been another charge added to your home, a significant fall in house property prices or if an event of default, like bankruptcy or provision of false information has occurred.

Your Terms and Conditions document gives a full list of reasons when we might withdraw your Drawdown Facility. In any event that your Drawdown Facility is removed we will always tell you.

If you have a Power of Attorney (PoA) for Property and Financial affairs, your attorney can apply for a drawdown on your behalf, provided you have given the required consents or have lost mental capacity. The PoA must be registered with us before your attorney applies for a drawdown.

For any new PoA we’ll need to see an original or certified copy of the PoA with proof of identity and residency for the attorney acting on your behalf

Visit Power of Attorney and lifetime mortgages for more information on setting up a Power of Attorney for your lifetime mortgage and what this means for you and your attorney. Or you can send enquiry to us at customerservices@landghomefinance.com. If you’re contacting us by email please remember not to send any personal, financial or banking information because email is not a secure method of communication.

Need help?

Additional support is available If you have any further questions or would like to get some guidance and advice, before making any decisions. It's important you consider alternative options before releasing more money from your home. 

Retirement guidance

Equity Release Council

Legal & General Home Finance Ltd is a member of the Equity Release Council, a trade body setting standards for providers. Take a look at their consumer brochure for more details.

Contact us about drawdown

Our dedicated customer services team are always happy to help with your questions or to help you apply. 

Call us on:

03330 048444

Monday to Friday 8.30am to 5.30pm.
We may record and monitor calls.

Get independent advice

You can't take out an equity release product unless you have taken financial advice. Find out how to access independent legal and financial advice.