The cost of moving into a care home is one of the biggest financial challenges many families face in the UK. With average fees ranging from £800 to over £1,500 per week depending on the level of care required, the question of funding becomes central. While selling the family home is a common solution, it is not the only option.
In 2025, several alternatives allow pensioners and their families to finance care home costs without giving up their property. This guide explores the five most effective strategies.
1. Using Savings and Investments
For those with sufficient savings, using personal funds remains one of the simplest methods to cover care fees. Investments such as ISAs or bonds can be drawn upon, and structured withdrawals may help cover costs without liquidating assets like the family home.
2. Care Annuities (Immediate Needs Annuities)
A care annuity provides a guaranteed income for life in exchange for a lump-sum payment. The advantage is financial certainty: once set up, the annuity covers ongoing care fees without risk of shortfall.
3. Equity Release Schemes (Lifetime Mortgages)
Equity release allows homeowners to unlock part of their property’s value without selling it. A lifetime mortgage provides funds while the individual continues to own and often live in the house. Repayment is typically made when the property is eventually sold, or from the estate.
Find YOUR ideal care home NOW!
4. Local Authority and NHS Funding
Depending on financial circumstances and health conditions, pensioners may qualify for:
Local Authority Means-Tested Support: where savings and income fall below thresholds.
NHS Continuing Healthcare: full funding for those with severe medical needs.
These programmes reduce or even eliminate out-of-pocket expenses.
5. Deferred Payment Agreements
Some local councils offer deferred payment agreements. This scheme lets residents delay paying care home costs until later, often after passing away, while still retaining ownership of their property. It prevents an immediate house sale while ensuring care costs are covered.
Comparison Table: Options to Finance Care Homes Without Selling Property
| Financing Option | How It Works | Key Advantage |
|---|---|---|
| Savings & Investments | Use personal assets such as ISAs or bonds | No debt or repayment required |
| Care Annuities | Lump sum exchanged for lifetime care income | Guaranteed fee coverage for life |
| Equity Release | Borrow against property value without selling | Retain home ownership |
| Local Authority / NHS Support | Means-tested or medical-based state funding | Reduces or eliminates private costs |
| Deferred Payment Agreements | Local council pays now, estate repays later | Avoids immediate sale of the home |
For further details on funding care in England, visit the UK Government – Paying for Your Care.
FAQ – Financing Care Homes Without Selling Your House
Can I keep my home and still get help with care home fees?
Yes. Equity release, deferred payment agreements, and state funding allow you to retain ownership while covering costs.
Is equity release safe?
Equity release is regulated by the Financial Conduct Authority. Choosing providers who are members of the Equity Release Council ensures safeguards.
Who qualifies for NHS Continuing Healthcare?
It is available to individuals with significant, ongoing health needs. Eligibility is assessed through a medical evaluation.
Are care annuities expensive?
They require a substantial lump sum, but they guarantee lifelong coverage of care costs, which can be cost-effective long term.
What happens if I run out of savings?
If your savings drop below government thresholds, you may qualify for local authority funding.
Selling a home to pay for care fees is not the only option. From equity release and care annuities to deferred payment agreements and state support, families in the UK have multiple alternatives in 2025 to preserve property ownership while financing quality care.
Need help finding a care home?
Senior Home Plus offers free personalized guidance to help you find a care facility that suits your health needs, budget, and preferred location in the UK.
Call us at 0203 608 0055 to get expert assistance today.
Share this article :
Latest posts
You are looking for an establishment for your loved one ?
Get availability & prices
Fill in this form and receive
all the essential information
We would like to inform you of the existence of the opposition list for telephone canvassing.
