Care Costs Funded via Second Charge to Avoid Family Home Sale
£120,000 · 15 years · 6.95% fixed. An elderly homeowner's family needed to fund ongoing residential care costs without selling the family home, which they hoped to retain.
The Client
Elderly homeowner's family
The Challenge
An elderly homeowner's family needed to fund ongoing residential care costs without selling the family home, which they hoped to retain. The home had a small existing mortgage and significant equity. A second charge would allow care costs to be funded for an extended period while the family considered longer-term options.
Our Solution
Doulton placed a second charge of £120,000 at a combined LTV of 55% - conservative given the significant equity. First charge lender consent was straightforward at this LTV. The interest-only option on the second charge minimised monthly outgoings, preserving more equity for the family.
The Outcome
Care costs funded for an extended period without a forced property sale. Family retained the home and subsequently arranged a longer-term solution through a combination of equity release and a sale at a time of their choosing rather than under financial pressure. Key highlights: Family home retained - forced sale avoided; Interest-only minimised monthly outgoings; Conservative 55% combined LTV - maximum equity preservation.