Equity Release for Care at Home

When Kate fell over and broke her ankle, she did not feel that she could expect her two children to look after her. They both had full time jobs and children of their own and so Kate looked into the possibility of getting someone to come in a couple of times a day to help her out. Kate did not want to go and stay in a care home until she felt better, as she felt more comfortable staying in her own home.

Getting help in was expensive and Kate looked into the possibility of borrowing some money to help her pay for the help. This did concern her, as she did not know how she would be able to afford to pay the money back, but while looking through her local paper, Kate saw an advert for equity release. Although Kate knew very little about what was involved, she called the number provided and spoke with an equity release adviser who explained everything she needed to know and answered all of her questions.

Kate agreed to speak with the adviser in more detail, and after a long discussion about her situation, the adviser told her that equity release was a possible solution in her situation and he recommended a lifetime mortgage which included a reserve facility. Kate could take sufficient funds to pay for the home care she needed in the coming months, and leave the remaining money in an interest free reserve facility. This was so that she could take some more money in the future if she decided that she did not want the visits from the carer to stop, or she needed more care at a future date. The adviser assured Kate that if she did not need the money in the future, then having it in the reserve facility would not cost her anything and it could just be left there.

Equity release may involve either a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.