Ruth turned to equity release in her late eighties, when she was in poor physical health and had for some time employed an agency carer at home, which was a cost she was funding privately.

This had taken its toll upon Ruth’s savings to the point that her family were concerned that the arrangement would need to end. It was crucially important to Ruth that she be allowed to remain in her own home and her family felt it would have a detrimental effect upon her health if she moved into an assisted living placement or a care home.

Having discussed alternatives such as family assistance, Ruth opted for a drawdown lifetime mortgage where the initial withdrawal was sufficient to meet her care costs for the next 12 months. Given her age and the relatively low initial sum that was released, she was able to secure an interest rate of 2.50% (in 2021) and agree a sizable reserve fund because additional funds may be required to meet ongoing care costs in future years.

The equity release plan has given Ruth the comfort and peace of mind of knowing that her care at home may continue indefinitely.

This case study was supplied by Bower. The picture is posed by models.

It first published in the Council’s Anniversary Report in January 2022. To read the report please click here.