Equity Release to Pay for Home Care

Discover if You Can Use Equity Release to Pay for Care
Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui
If You Dream Of In-Home Care, You Might Want to Use Equity Release to Fund These Opportunities. Discover the Secrets Right Here…

Equity Release to Pay for Care

Medical and care costs frequently arise as we age, yet our income drops and we’re often forced to move to government care facilities.

If that sounds like a nightmare, but you can’t afford to pay for care at home, we’ve got some exciting news for you.

You can your property value pay for care, while still living there, with equity release.

Sounds too good to be true?

Through this article, we’ll help you learn:

  • How you can use equity release to pay for care?
  • Equity release options available to pay for the care you might need.
  • The risks of using equity release to pay for care.

EveryInvestor, as a leading resource for equity release information, is here to help you learn the truth about all things equity release and financial management.

As a result, our experts spent hours doing thorough research on the equity release business in [SEO_YR_DATE] and we’ve found fantastic information about equity release to pay for care.

Let’s get started!

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How Can Equity Release Be Used to Pay for Care?

Equity release can be used to pay for any care you might need as it allows you to unlock funds from your home, which you can use to help pay for any care you might need.

Here are more examples of how you can use equity release to pay for care.

Equity Release to Pay for Residential Care

You can use equity release to pay for residential care for a loved one, but you need to remain a resident on your property.

The first step is for your loved one to contact your local authority for a Care Assessment1.

This entails a financial means test to determine how much (if any) of the care costs you will be responsible for.

Equity Release to Pay for Home Care

Equity release can help fund home care if you’re looking to remain on your property.

By releasing money from the property’s value, you can continue to live and receive care where you are happiest — in your home.

Equity Release to Pay for Home Improvements

Equity release can be used for those costly home improvements that are often required to live safely on your property.

This might include the cost of adjustments, such as installing a stairlift, moving a bathroom downstairs, or installing a ramp.

The good news?

Equity release is a method of paying for home upgrades, particularly if you want to make modifications to your current property.

Equity Release to Fund Private Medical Care

Equity release is an excellent option to fund private medical care if you have a medical condition for which treatment isn’t accessible through the NHS2

Equity Release Options for Care Funding

The equity release option for care funding includes lifetime mortgage drawdown plans, income equity release plans, a lump sum plan, or an Immediate Needs Annuity.

Here’s more information:

Lifetime Mortgage Drawdown Plan

One method of using equity release to fund care costs is to withdraw regular sums from a lifetime mortgage drawdown plan

Lifetime mortgage drawdown plans allow you to withdraw cash from your house as and when you need it, rather than in a single sum.

Monthly Tax-Free ‘Income’

Another alternative for equity release for care financing is to set up a monthly tax-free ‘income’ from a lifetime mortgage income plan.

This equity release plan could be helpful if you need to supplement your existing income or savings to meet care costs.

One-Off Lump Sum

Some people use equity release to receive a one-off tax-free lump sum amount.

This might be used to manage care expenses, pay other bills, or support significant home improvement projects.

Equity Release to Pay for an Immediate Needs Annuity

An Immediate Needs Annuity3 can be purchased with a one-time equity release lump amount.

Immediate Needs Annuities are care packages that guarantee that care expenditures will be covered continuously.

Why is this good news?

This might assure you that you’ll never run out of money to pay for medical treatment.

What Are the Risks of Using Equity Release to Pay for Care?

The risk of using equity release to pay for care is that equity release may not be appropriate for everyone.

It will result in less money available for any spouse who remains on the property and any eventual beneficiaries. 

If used to pay for your home care, it may prohibit you from qualifying for any local authority sponsored domiciliary care/direct payment award.

The Impact of Equity Release on Your Entitlement to Help With Care Fees

Equity release can impact your entitlement to help with care fees.

If you’re presently getting care in your own home and have savings below the threshold, you will be eligible for assistance with your care payments. 


If you release equity from your property and your savings exceed the threshold, you will be required to start paying for your care.

As a result, you should consider this while evaluating if equity release is good for you.

Common Questions

Can I Use Equity Release to Pay For My Own Long-Term Care Facility?

Can You Use Equity Release to Pay for Care?

What Happens to Equity Release if I Go Into a Care Home?

Can I Use Equity Release for Anything?

In Conclusion

Equity release schemes are only one of the many ways to help self-finance long-term care.

Make sure you’ve considered all the alternatives, such as selling your property to downsize to a cheaper one or using savings to buy an annuity that will cover your care costs.

Consider grants or subsidised loans to raise capital for home improvements or modifications.

Whatever you do, chat to your financial advisor who will guide you through finding the best retirement plan for your indivualised circumstances.

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