If you do not qualify for council funding, or if for any reason you choose not to be financially supported by the council, you can arrange and pay for your own care. (Arranging care in your own home) The cost will depend on how much care you need and where you live.
If you are meeting the cost from your savings, you are advised to get specialist financial advice to help you to use your money to its best effect and avoid running out of money for other essential living costs. But, remember, it is always advisable to get a care Needs Assessment even if you know that you are going to pay for your own care.
If you own your own home, but do not qualify for council funding and cannot raise sufficient funds in other ways, equity release could be a solution.
There are two different types of scheme:
- a lifetime mortgage which is based on raising a loan against the value of your home, and this is eventually repaid when you move out or die;
- a home reversion plan, under which all or part of your property is sold to a home reversion company.
Most reputable equity release schemes carry a guarantee that any accruing loan will never exceed the property’s value and you would be allowed to continue living in your home. Depending on your circumstances, it might be better to take a regular income or “draw down” facility rather than a large lump sum on which you will pay interest from the outset. Alternatively, a single lump sum might be released to buy a care fee payment plan which could provide regular income to pay for care.
Getting further financial advice
EAC understands that older people’s choices and decisions about their care and housing involve financial considerations, and therefore we aim to provide, through EAC FirstStop Advice, as much information as we can to help our clients assess their options with a full understanding of any financial consequences.
Our own telephone Advisors are trained to be able to provide detailed information and guidance about state benefits and entitlements, and to explain in outline the main types of commercial ‘financial products’ of particular relevance to older people. They can also explain the role of Independent Financial Advisers (IFAs) and, if you wish, advise on how to go about finding one and suggest questions to ask to help you select a suitable one.