As a later life lending broker, one of the most meaningful conversations I have with clients isn't about mortgage rates or later life lending products, it's about what comes next. Specifically, how to plan ahead so that if care is ever needed, families aren't scrambling to find answers at a stressful time.
The reality is that more than 2 million people in the UK aged 65 and over have unmet care needs right now. And by the time we're in our mid-40s to mid-50s, around half of us will already be helping to care for an older relative in some way. This isn't a niche issue, it's something most of us will face, either for ourselves or someone we love.
So let's talk through your options clearly, without the jargon.
The Three Main Types of Care
When people think about "care," they often picture care homes. But that's just one piece of the picture. Each of the below routes are suited to different circumstances and stages of life.
- Domiciliary care supports people living at home. It covers personal care, domestic help, and mobility support, currently costing from £32.41 per hour in England.
- For those who can no longer manage independently, a care home provides round-the-clock support, with costs starting at over £5,000 per month across residential, nursing, dementia, and dual-registered settings.
- A third, often-overlooked option is simply adapting your home. Stairlifts, grab rails, and a walk-in shower can cost as little as £500 for minor changes, or £15,000 or more for major works.
Funding Your Care
If a local authority assessment determines you'll fund your own care, you're classed as a self-funder. The good news is there are more options than most people realise. These include releasing equity through a lifetime mortgage, renting out your property, using a government-backed deferred payment scheme, downsizing, drawing on savings, investments or pension funds, taking out long-term care insurance, or receiving contributions from family members.
One thing I see time and again is families leaving these conversations too late. Often until a health crisis forces the issue. By that point, decisions that should be made calmly end up being made under enormous pressure.
Each option suits different circumstances, which is why independent financial advice is so important. The free My Care Hub resource is also well worth bookmarking for practical guidance on navigating the care system.
A Word About Equity Release and Care
Later life lending can be a helpful way to fund home adaptations or domiciliary care costs, allowing someone to stay in their own home with the support they need. However, if a full-time move into a care home is on the horizon, equity release is unlikely to be the right solution. In that situation, the property would typically need to be sold or rented rather than kept as security for a lifetime mortgage.
A good later life adviser will help you work through all of this. The right answer depends entirely on your individual situation, which is why a personalised conversation is always the place to start.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.