Older people ‘should use equity release to finance care’

Posted 13/11/2009

Safe Home Income Plans (Ship) has called on older homeowners to consider the benefits of equity release as a means of financing long-term care costs.

The industry body has reminded those struggling to pay for care that releasing equity can be an ideal finance method, as it affords flexibility and eliminates the need for major sacrifices.

This advice comes as the government looks to review the current system amid concerns that many older people are being forced to sell their homes in order to pay for care.

Andrea Rozario, director general of Ship, said that ministers should do more to promote equity release as a potential answer to the care funding crisis.

She said: “Delivering a simple effective method by which those entering long-term care can access an equity release scheme … is something that is worthy of serious consideration.”

Earlier this month, the government implemented legal changes to allow homeowners to release equity without impacting on their income-related benefits, a move which was welcomed by Ship.