A Drawdown Lifetime Mortgage has all the same features as a Lifetime Mortgage, but instead of a single lump sum, you take what you need now and leave some in what is known as a reserve. If you need additional funds in the future you can drawdown some or all of the reserve. Typically, this can supplement income especially where pensions are not covering your day to day needs.
Others may have an income in excess of their day to day needs, but want a cash lump sum for a major purchase or specific situation. A possibility could be that a borrower wants to raise enough to change a car. They then may want to help a grandchild with school fees or through university. Gifting on an annual basis allows the interest to stay as low as possible, and gives maximum flexibility should circumstances change.
There are no requirements to drawdown any funds from the reserve but it is important at outset to establish if a drawdown plan is right for you. You may be paying a higher rate of interest, just to have money easily available but never use it.
To understand the features and risks of a Lifetime Mortgage, please ask for a peronalised illustration