By John Cossons, Equity Release Adviser with Equity Release Northampton
Home care can look an attractive alternative to residential care and is often preferred by those who have a lower level of care needs. As you get older remaining in your own home becomes more important. Home care is available at varying levels to accommodate the needs of many different types of individuals. Yet like any form of care, there are financial implications. The cost of home care is usually less than in residential or nursing care. However, the money you spend can still mount up over time.
Home Care. How much does it cost?
On average the cost of home care is between £20/18 per hour.* If you are planning for two hours of care a day at £18 per hour this equates to around £1100 per month. That is just over £13,000 per year.
Here is a recent case study.
I have recently completed a case for some clients, who act for their parents through a power of attorney. They did not have the available money to pay for their parents’ home care. Additionally, they did not want their parents to go into a care home. They felt that their parents would be far better off staying in their own home. This meant that they stayed close to existing friends, support groups and surroundings that they were familiar with.
After looking at all their options with them, through the local authority and the NHS, I was able to help them raise £70,000 to cover the cost of the immediate care needs. This was done by arranging a fixed rate lifetime mortgage against their parents’ home.
Lifetime Mortgage. How do they work?
With a Lifetime Mortgage, there are no monthly repayments required. Their parents will still own their own home. They can remain in their home until the last one can no longer be cared for at home or passes away.
For peace of mind, the estate is protected by the “No Negative Equity Guarantee”. This guarantees that should the value of the property fall below the outstanding loan balance they will never owe more than the value of the house.
*UK Care guide
How Equity Release Northampton can help you with Home Care Costs.
We are a firm of Independent Financial Advisers (IFA’s). This means that the advice we offer is unbiased. We will look at all the financial option open to you, not just Lifetime Mortgages. Some firms will only sell their own products or work from a limited panel.
Why not arrange an appointment today. Meetings can be arranged at a time to suit you. We would normally arrange a face to face meeting but with social distancing guidelines, everything can be arranged over the phone. We also make use of-
So no need to meet. The choice is yours.
The initial fact-finding meeting is free and without obligation. Our fee of £895.00 is only payable when you draw down your mortgage. It is paid directly to us by your solicitor on completion. So if we are unable to find a suitable product for you, you will pay us nothing.
Our Equity Release advisers live in-
These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.