Pay for Care Without Selling Your Home

In the past our clients had to sell their home when the time came to fund care.

Many found the decision difficult, having worked all of their life to buy their home, while others didn’t want to leave and would have preferred the option of having care at home.

Things have now changed since the introduction of a care funding product that mixes an immediate care plan with an equity release mortgage.

A care plan guarantees an income for life that can be used towards meeting care fees in return for a lump sum premium.

Instead of writing a cheque for the premium, it can now be lent as an equity release mortgage against the property. No mortgage repayments are due during the life of the loan and the interest is added to the loan.

Unlike most similar schemes, the property can usually be rented once the plan is set up. This might reduce the income consequently lowering the care plan premium.

Alternatively, the income can be used to pay for a live-in carer.

It’s an interesting option that gives those funding care more choice of how they secure their funding.

Posted in The carefeesadvice Blog

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