Equity release increasingly used to fund residential care

Figures released by the Liberal Democrats reveal that there were 155,000 people in the UK self funding their residential care.

Increasingly equity release is being used for this purpose as the cash released is on a tax free basis. Care bills are often high and unexpected. The cash released can be done so as a lump sum or as a series of regular payments.

The FSA (Financial Services Authority) suggests that before you consider taking out an equity release plan that you consult an independent financial adviser. Especially when the funds are needed quickly to fund care costs it is increasingly important that equity release schemes are used if they are fully understood.

Louise Tilston of Ashall Glover Financial Services commented: “We regularly work for clients who wish to use equity release products to fund care costs. At this time we ensure that we work to ensure that they understand the exact mechanics of equity release products to allow them to make an informed decision.”

Ashall Glover Financial Services are equity release specialists