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Drawdown Mortgages and the draw down facility are usually a feature of Flexible Mortgage products which provide the borrower with a guaranteed option to borrow additional funds at a later date, without having to undergo the formalities of making a further borrowing application.
The content that follows explains the Mortgage Drawdown facility, in more detail, how it works, and how we might be able to help should you be looking for a drawn down facility with a mortgage or remortgage.
Table of Contents:
Drawdown mortgages are usually a feature of a Flexible Mortgage that give the borrower a guaranteed option to borrow additional funds at a later date, without having to undergo the formalities of making a further borrowing application.
The Drawdown facility on a flexible mortgage can be very useful in certain instances, especially where a borrower may be uncertain as to the actual amount that he may ultimately require. For example, if you were to undertake a programme of major home improvements, it's likely that you may not have had the opportunity to cost all the improvements, or you may wish to build-in a contingency element into the project costing's.
In such instances, where additional funds may be required later down the line, the Drawdown facility of the Flexible Mortgage product has a tremendous advantage over the conventional mortgage. Some of the lenders operating a drawdown facility will forward funds by issuing a cheque on request, whereas some other Flexible Mortgage lenders will provide either a special cheque book or a credit card to enable the borrower access to their yet "undrawn" funds, as and when they are required!
It's worth knowing that drawdown facilities are not restricted to home improvements alone! These schemes can be used for any personal expenditure that is anticipated at some future date.
So in a nutshell, the mortgage drawdown facility available on many flexible mortgage products can be quite beneficial, especially in certain situations:
There are a couple of minor points to consider with Drawdown Mortgages and the drawdown facility which aren't necessarily disadvantageous, but we think its worthwhile you knowing and bearing in mind:
Hopefully we've answered any initial questions you may have had with regards to the Mortgage Drawdown facility.
If you are interested in purchasing a new property, or remortgaging your existing home, and you feel that a Mortgage Drawdown facility might be useful to you, then we would be delighted to assist in any way we can. Naturally, we'll carefully assess your needs, circumstances and requirements, and come up with the most appropriate solution for you!
So why not contact us online anytime, or call one of our professionally qualified mortgage advisors on Freephone 08000 282 281, lines are open from 8.00am until 10.00pm everyday (including weekends), and we can assure you of a warm welcome, and a first class professional service!
Well that concludes our look at the Mortgage Drawdown facility, we hope you found it to be useful. You can also discover the many other benefits this type of mortgage has by checking out our Glossary page on Flexible Mortgages.
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.
