What Happens if I Move into Care?
At Rockhopper Later Life Finance we explain what happens to a lifetime mortgage if you move into long-term care, because it is an important part of understanding the commitment. A lifetime mortgage becomes repayable when the last or sole borrower dies or moves permanently into care, and how that works depends on whether the plan is in one name or two.
We work with customers who:
- Want to understand what happens to the plan if they need care
- Are planning ahead for the possibility of residential care
- Are a couple wanting to know how care affects a joint plan
- Want to understand how the loan is repaid
- Are weighing equity release against funding care in other ways
- Want to know how this interacts with care funding
Planning for the possibility of needing care is sensible, even if it is not something anyone likes to dwell on. We explain plainly how a lifetime mortgage is treated so you can plan with a clear understanding.
A lifetime mortgage becomes repayable when the last remaining borrower, or a sole borrower, moves permanently into long-term care. At that point the home is usually sold and the loan repaid from the sale proceeds, with anything remaining passing to the estate.
For a joint plan, if one of two borrowers moves into care while the other remains at home, the plan continues unchanged for the partner still living there. It only becomes repayable when both have died or moved into care.
Using your home’s value through equity release can interact with how care is funded and with means-testing, including the rules on deprivation of assets. Because care funding is a specialist area, we may suggest you speak to a regulated care-fees adviser alongside our mortgage advice.
We explain how a plan treats a move into care before you commit, and we research the market for the option we believe fits your circumstances.
The Process
Your first conversation is an informal discussion of your circumstances and any questions you have. There is no cost or obligation.
We complete a full fact-find and, where a product is involved, research the market and provide a written recommendation explaining our reasoning.
Every situation is different, and our advice always reflects your particular circumstances.
Speak to a Later Life Adviser
Call 0203 621 5696
Lines open 9am to 5pm Monday to Friday. Alternatively, complete the enquiry form and we will call you back at a time that suits you.