What Is Equity Release?
Equity release is a financial product that allows homeowners aged 55 and over to access some of the money tied up in the value of their property without having to sell their home or move out.
The most common type of equity release is a lifetime mortgage. This allows you to borrow money against the value of your home while retaining ownership of the property. The loan, plus any interest that builds up over time, is usually repaid when the property is sold, typically after you move into long-term care or pass away.
Some providers allow you to take the money as a lump sum, while others offer flexible withdrawals over time. This can be particularly useful for people who need ongoing funding for care rather than a single large payment.
This can help by:
- Paying for regular home care visits.
- Funding live-in care, where a carer lives in the home and provides support.
- Covering personal care, meal preparation, medication support, and companionship.
- Making home adaptations such as stairlifts, ramps, or accessible bathrooms.
- Reducing the need to move into a residential care home.
Services can be tailored to suit individual needs and routines. This may include support with errands, light housekeeping, meal companionship, leisure activities, transport to appointments, or simply enjoying conversation over a cup of tea. The goal is to help people remain connected, active, and comfortable in their own home environment.
How Equity Release Can Help Fund Care at Home
For many people, using equity release means they can continue living independently in the place they love while receiving professional care tailored to their needs.
At Home Care works with individuals and families to provide flexible care solutions that help people remain safe, comfortable, and supported in their own homes for as long as possible.
Home is often the best place to receive care, recover, maintain independence, and continue enjoying the life and community you know.
How it Works
There are several types of equity release available in the UK, and the most suitable option will depend on your individual circumstances and care needs.
Lifetime Mortgages
A lifetime mortgage is the most common form of equity release. It allows you to take out a loan secured against your home while retaining ownership of the property. Interest is usually added to the loan over time, and the amount borrowed is typically repaid through the sale of the property when you pass away or move into permanent residential care.
Home Reversion Plans
A home reversion plan involves selling all or part of your property to an equity release provider in exchange for a tax-free lump sum or regular payments. You can continue living in your home, usually rent-free, for the rest of your life.
Drawdown Equity Release
Some providers offer a drawdown facility, allowing you to release smaller amounts of money as and when they are needed rather than taking a large lump sum upfront. This can be particularly useful for funding ongoing care costs, as you only access funds when required.
Why Choose Care at Home?
Remaining at home allows you to:
- Stay independent
- Remain close to family and friends
- Keep familiar routines
- Enjoy the comfort of your own surroundings
For many people, receiving care at home provides a better quality of life and greater peace of mind.
How At Home Care Can Help
At Home Care supports individuals and families with personalised home care and live-in care services, helping people remain safe, comfortable, and independent in the place they know best – their own home.
For advice about care at home, please feel free to contact our helpful team.
“Home is not just where we live. It’s where memories are made, families grow, and life feels most familiar.” – Ash Malik, At Home Care
What Can Equity Release Be Used For?
Visiting Home Care
A professional carer visits the home to assist with:
- Personal care
- Medication support
- Meal preparation
- Shopping
- Companionship
- Domestic tasks
Live-In Care
A professional carer lives in the property and provides ongoing support.
This can be particularly beneficial for people living with:
- Dementia
- Mobility issues
- Long-term health conditions
- Frailty in later life
Live-in care allows individuals to continue enjoying their daily routines while receiving one-to-one support.
Home Adaptations
Equity release can also fund improvements such as:
- Stairlifts
- Walk-in showers
- Ramps
- Handrails
- Accessible bathrooms
- Bedroom adaptations
These changes can make a home safer and more comfortable for years to come.
Things to Consider Before Taking Equity Release
Equity release is a major financial decision and should always be considered carefully.
Important considerations include:
- Impact on inheritance
- Long-term financial planning
- Eligibility for benefits
- Interest charges
- Future care needs
It is essential to seek advice from a qualified financial adviser who specialises in equity release before making any decisions.
Final Thoughts
Growing older should not automatically mean leaving your home.
For many homeowners, equity release to pay for care can provide a practical way to fund high-quality support while remaining in familiar surroundings.
With the right financial advice and the right care support, it is often possible to continue living independently, surrounded by cherished memories, family connections, and the comfort of home.
It is essential to seek advice from a qualified financial adviser who specialises in equity release before making any decisions.
Need Advice About Care at Home?
Our team can discuss your care needs, explain the available options, and help you explore ways to remain safely and comfortably in your own home. We can also connect you with trusted equity release specialists and other professionals to help make the process as smooth as possible.
If you have any questions about equity release and how it works, please don’t hesitate to contact us today.
FAQs About Equity Release and Care
Can equity release be used to pay for care?
Yes, many homeowners use equity release to pay for care at home. The funds can be used to cover the cost of home care visits, live-in care, personal support, specialist equipment, and home adaptations that help people remain independent in their own home.
Can equity release help me avoid moving into a care home?
For some people, yes. Equity release can provide access to funds that make it possible to pay for care at home, reducing the need to move into residential care. However, the suitability of this option will depend on your individual care needs and financial circumstances.
Will equity release affect my inheritance?
Equity release will usually reduce the value of your estate because the loan and any accrued interest are repaid from the proceeds of your property’s sale. This may affect the amount you leave to your beneficiaries, so it is important to seek professional financial advice first.
Can I stay in my home if I take out equity release?
Yes. Most equity release products allow you to remain living in your home for the rest of your life or until you move into permanent long-term care, provided you meet the terms and conditions of the agreement.
What types of care can equity release help fund?
Equity release can be used to fund a range of care services, including visiting home care, live-in care, respite care, dementia care, personal care support, and home adaptations such as stairlifts, ramps, and accessible bathrooms.
Is equity release the right option for everyone?
Equity release is a significant financial decision and may not be suitable for everyone. Before proceeding, you should speak with a qualified equity release adviser who can explain the options available and help you understand the potential impact on your finances and future plans.
