Drawdown Mortgages – A Simple Explanation Of How They Operate
The good news is that here at Equity Release Scotland, we walk you through any and all procedures ensuring that you have a full and clear understanding of the product you have chosen.
Your property is valued by an independent chartered surveyor, and then dependent on a number of factors, such as your current age and lifestyle choices the lender will agree to lend you a certain amount of money. This money is secured upon your home, and normally there are no monthly repayments to be made by the lender.
The homeowner is allowed to remain in the property for the rest of their life, or until they have to leave it due to medical conditions. Once the property is vacant, it is sold, and the proceeds are used to repay the initial loan plus any interest that has accrued. Any surplus money is then added to the estate left by the owner of the property.