Self-funded care in your own home

Paying for care from your own resources

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.

Equity Release

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.

FirstStop Advice has chosen to work with Just Retirement Solutions who offer equity release advice from a panel of carefully screened and selected product providers. Their advisers will talk to you about your circumstances and assess whether  equity release is the right option for you. If it isn't, they will clearly state the reasons why not. If it is, they will give you comprehensive advice on an appropriate equity release plan that meets your needs and circumstances.

Read more about FirstStop's Equity Release service.

Download the FirstStop guide to Equity Release