What happens to my lifetime mortgage if I need to move into a care home?

The answer depends on whether the lifetime mortgage is in your name only or in joint names:

If the mortgage is in your name only.
The house is sold and the loan plus interest is repaid. Any money left over can help pay the costs of your care.

If the mortgage is in joint names.
You and your partner can live in the house until the last person dies or moves into a care home permanently. Then the house is sold. Any money left, after the loan and interest has been repaid, can be used to pay for or towards any care costs.


What if I sell my house, but still don’t have enough money to pay the care home fees?

After the loan plus interest is repaid, any money left can help pay for or towards your care home fees. If this together with other savings and investments isn’t enough, you can apply for local authority funding. Your local authority may pay all or part of the costs if your total income, including savings and investments, is below £23,250 (this figure is higher for Scotland and Wales). There are other sources of funding available if you’re suffering from a serious medical condition or are disabled.


What if I need care in the home?

You can use a lifetime mortgage to pay for the costs of adapting the home. For example, installing alarms or a walk in shower. If you need a regular carer, a lifetime mortgage can help pay the fees. If you’ve already taken out a lifetime mortgage you may be able to  release more with a drawdown or apply for a further advance.

Our advisers can address any concerns you may have about care and make sure your needs are met.

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Planning for long-term care is important

We’ll answer any questions you have about long-term care and how to plan ahead.

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