Pensioners Are Using their Homes to Pay for Care

Wed, 13 Dec 2017

Pensioners Are Using their Homes to Pay for Care
Retirement is viewed as a time to relax, slowdown from work and embark onto newer things. It should be a restful, productive and most of all an enjoyable point in life. What shouldn't be included are concerns regarding money - especially important things such as care. As humans age, we may need help with certain aspects of our life, including our own health and well-being. Yet the cost of health is becoming such a worry, that pensioners are remortgaging their homes to cope with rapidly increasing care costs.

With the rate of inflation rapidly growing, the cost of care is growing with it. A pension may be able to cover for the price of carers visiting multiple times per day, but it fails to extend to general support in life. For example; home improvements to make living easier or simply supporting the family is made much more difficult by the cost of care.

As a result, pensioners are choosing to take out an Equity Release Plan. It is a better solution compared to the option of selling altogether. There is still the ability to keep the precious, long-standing family home whilst retaining some profit. In addition to this, there is also the possibility of borrowing more if further funding is needed. The only issue that can arise is that interest rates can pile up and the final total to pay following the death of the borrower can be substantial. However, it gives some peace of mind in the face of unattainable care costs.

At present, the average cost of a residential care home has gone beyond £80,000 per year. The government has been called on to address the issue. There was hope that a solution would be outlined in the Autumn 2017 Budget, however there were no major announcements.

Equity Release is a good option for pensioners who are struggling with their finances. It enables them to tap into the value of their homes but without having to give up something of great, sentimental value. However, the cost of care needs to be addressed. Pensioners shouldn't have to struggle obtaining something that they fundamentally require. The government needs to act now, and should've made some provision in the last budget, sadly this was not the case.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch