This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
Categories:Equity Release

EquityCare wants small drawdown for home care

  • Print
  • Comments (1)


Equity-release specialists have called on providers to develop products for the home care market which allow customers to draw down smaller amounts.

A drawdown scheme is a type of lifetime mortgage where customers can release chunks of the maximum amount a provider has agreed to lend instead of receiving the full amount at the outset. Providers will typically release a minimum of £10,000 at a time.

EquityCare chief executive Tim Eadon (pictured) is calling on providers to launch schemes that allow people to release smaller amounts to fund home care.

He says: “It is great talking about equity release with the domiciliary care market but if you have not got a product that works in that market, it is not helpful.

“The problem is the lowest loan anyone will give is £10,000. For the domiciliary care market, that is way more than people need to start with, so we need a product that will let homeowners release smaller amounts.”

Independent Equity Release Advisers Alliance spokesman and IFA Dermot Brannigan says: “It can be expensive to draw down £10,000 at a time. Being able to release a smaller, regular amount of money would probably be a good idea when people get to retirement.”

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (1)

  • I agree that equity release products more finely tuned to the domiciliary care market are needed. However, a typical client at Bower Retirement Services referred by IFAs specialising in care fees planning, requires on average £3,000pm. So an initial £10,000 will quickly be depleted once you take legal costs and arrangement fees into account.

    What we really need, is for providers to make payment directly to the CQC registered care provider, much like the Immediate Needs Annuity providers do. That, coupled with variable release amounts as Tim said, would be helpful.

    Simon Chalk
    Equity Release Planner
    Bower Retirement Services

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


Are you prepared to process insistent client business?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments