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Elderly turn to secured loans to fund care homes

Elderly turn to secured loans to fund care homes

Category: Loans

Updated: 12/12/2008
First Published: 11/12/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Elderly people are being forced to take out secured loans in order to pay care home fees, it has been suggested.

According to Saga, the economic downturn has led to a number of pensioners facing difficulty in affording the fees.

And while they traditionally would have sold their home to provide funding, long term care expert Alex Edmans noted that the economic climate has made this difficult.

"If they haven't got other savings to meet their care home fees, they're having to accrue a debt against their property through the local authority before they can meet their care home fees," she explained.

Meanwhile, Axa
Of the 11.6 million people that reported facing financial difficulty, six per cent said they are worried they will lose their homes, while 33 per cent are struggling with credit card debt.

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