According to recent figures, the cost of funding care is an increasing burden on the UK’s finances.
The average cost of one year’s care in a care home is now above £80,000 and continues to rise. The figures from Prestige Nursing + Care, show that the shortfall between the average pensioner’s income and care costs has risen to £19,382, an increase of over £5,000.
The government has been called upon to address the rising problem, although no action has yet been taken. Lifetime mortgages can be a solution for homeowners, letting homeowners borrow money against the equity in their home. No interest is payable until the homeowner sells their property or they die.
According to the chairman of the Equity Release Council, Nigel Waterson, many people presume that the only option for those who require care and are unable to live independently, is a care home. However, a lifetime mortgage can provide the cash required to make adjustments to the property which will accommodate independent living.
Peter Dowds, who is a live-in care specialist with Elder, states that this type of borrowing is not often used to fund care for the elderly, despite being used to fund renovations and holidays. A live-in carer provided by Elder costs between £695 and £750 per week, while the average cost of residential care is £845 a week.
Although lifetime mortgages are an option for funding care, advice should be sought from a professional, like a CeMAP qualified mortgage advisor.
