The Nursing Home Fees Agency is offering its own equity-release service in response to demand.
It says the new NHFA Lifetime Mortgages service means it can offer younger clients and possibly their relatives the ability to stay in their homes or improve the quality of their lives by drawing down income or capital from their properties.
Advice will cover the impact that releasing equity may have on eligibility for state benefits and identifying the most appropriate scheme from its panel.
The firm is also launching a long-term care product, the Future Life Account, which is a savings vehicle linked to a Standard Life investment bond. It is a single-premium investment plan with low set-up costs, which NHFA says combines its legal and financial expertise with Red Arc's independent care assessment service and the investment experience of Standard Life. Minimum investment is £10,000.
NHFA believes many care assessments are carried out too late for positive outcomes such as independent living at home and has made its eligibility criteria more liberal, with investors needing to be unable to perform only one of six activities of daily living specified to be eligible for a home visit, assessment and care plan.
Principal Philip Spiers says: “We firmly believe that financial security is an essential ingredient in providing older people with a sense of well-being and such a facility as the NHFA Lifetime Mortgages will certainly complement our existing advisory services.”