Using a Lifetime Mortgage to Pay for Long-Term Care
A lifetime mortgage is one type of equity release plan, used to release money from your home and give you more cash to use in whatever way you see fit.
The money that is released using a lifetime mortgage plan can go towards a wealth of different expenses – from splashing out on luxury items and holidays, to using the money for paying off debts. For some people, they can even become a resource for paying for some of the serious costs that life can throw at you. Do be aware, though, that you should always think carefully before securing a loan against your home.
Financing Care in Your Own Home
One serious expense that can often strike in later life, though, is the need to pay for ongoing care. If this hasn’t been properly prepared for, people can sometimes find that they don’t have the funds available. This can add extra worry to a time of life that is already stressful, especially for people trying to stay in the home that they love.
There are many care services available that allow you to stay in your own home, ranging from simple meal delivery to regular visits from a care professional – or even a live-in carer who can assist with both the day-to-day tasks of running your home and your personal care needs. Services like these are a great way to retain independence while also receiving the support that you need, so if you think that it’s something you – or a loved one – could benefit from, it’s a good idea to have a payment plan in place.
Since many pensioners find that their home is the largest asset that they own, equity release can be one viable option for financing a stay-at-home care plan. You should also consider other options, including using personal savings or asking for help from relatives, if they’re available to you.
Equity release means releasing some of the money from your home to be spent in whatever way you wish. It will reduce the value of your estate, and may also affect entitlement to some means-tested benefits. The most popular type of equity release, a lifetime mortgage, is a loan secured against your home.
There is no one-size-fits-all solution for something as personal as long-term care, but if you’re looking for care in your own home then equity release is one option to keep in mind. Use our free online calculator to find out how much you might be able to release.