Self-funding options for home care
Before looking at self-funding options, you should make sure that you have exhausted all the local authority and health authority funding options and that you are claiming all the state and other benefits you’re entitled to.
If you are planning for the long term on how you are going to fund your care yourself, we highly recommend that you speak to an independent financial adviser who can help you explore all your options and discuss which one is best for your individual circumstances.
Below we have listed two websites where you can search for a care fees independent financial advisor in your area:
Equity release plans
Equity release plans can give you a lump sum or steady income to pay for your care using some of the money that’s tied up in your house, while you carry on living there. This is where you take a mortgage against part or all of your property but don't repay the loan until you die or go into long-term care and the home is sold.
Known as a lifetime mortgage, the interest (the rate is fixed at the start) rolls up but, so long as the equity release provider is a member of trade body, The Equity Release Council (formerly SHIP), the debt is guaranteed never to exceed the market value of the property at the time of sale.
Home reversion plans are the other kind of equity release plan. This is where you sell (rather than mortgage) all or part of your home upfront for a tax-free lump sum and are permitted to stay there rent-free until you die. Unfortunately, this means the price you sell for will be well under market-value. How much less will depend on your age.
You can find out more about equity release plans at the Equity Release Council's website.