Over 55 equity release to pay for domiciliary or nursing care

Whether you need domiciliary care to help you with everyday tasks such as personal care or shopping, or whether you need at-home nursing care, equity release schemes can help you meet your care fees, so you can maintain your independence.

Social care isn’t normally free; you are likely to have to meet at least some of the costs yourself, and potentially you may have to foot the whole bill. Over 55 equity release through home reversion or a lifetime mortgage can help you to fund these fees, so you get the support you need to be able to stay in your own home. 

Equity release money can be paid in a lump sum, but choosing small, regular payments will both reduce the interest that accrues on the mortgage – enabling you to pass on more of your estate to your loved ones – and help you manage your cash flow.

Home care costs vary greatly by provider and where you are in the country, however The Money Advice Service advises that home care fees average around £15 an hour, and calculates that if you need 14 hours’ support a week, this is likely to cost you £11,000 a year*. Age UK have useful advice about financial support for which you may be eligible. 

*Figures correct November 2018

Case study: home care fees 

Our client had been in a care home for a while, but wanted to go home. By writing an equity release mortgage against her £1.2-million home, she could afford to be looked after in the comfort of familiar surroundings. Rather than drawing down all the money at once, it was released in tranches every three months, keeping the interest to a minimum.