For pensioners who need long term care, there may come a time when they have to decide whether or not they should sell the family home to pay for the care they need.
Prestige Nursing + Care show that the average annual cost of a stay in a care home now exceeds £80,000 and is rising. The annual shortfall between pensioners’ average income and the cost of care has risen by more than £5,000 since 2012 from – £14,196 to £19,382.
A lifetime mortgage may be another way of raising funds to pay for the care whilst ensuring pensioners can stay in their homes.
Lifetime Mortgages allow older homeowners to borrow against their home and release equity from their property. The plans usually come with higher interest rates than regular mortgages, however, usually there are no repayments due until the property is sold or the borrower dies whilst the interest would have simply ‘rolled up’.
For those who are no longer able to live independently, a lifetime mortgage may be a viable alternative.
There can be risks involved and a lot of factors to take into consideration when deciding whether or not to opt for a lifetime mortgage. Taking out a lifetime mortgage can affect your access to state benefits and reduce the amount of inheritance you may leave behind for your family, for further details please contact one of our specialists who can provide you with a personal illustration.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth