Moving into a care home can cost upwards of £10,000 in the first month and often over £4,000 a month thereafter, this can easily mean an outlay of £30,000 in the first six months.
Move in (bridging) loans are one way in which funding can be organised quickly, usually within 7 days, to enable a care home placement; they are particularly useful if you are waiting to sell a property to fund ongoing care costs and do not have sufficient money in the bank.
Mrs Jones aged 85 years old can no longer manage to live in her property; she has decided that it is now time to move to a care home near her daughter.
The family have found a lovely local home which costs £950 per week, the home requires a one month deposit plus the first months fees paid in advance totalling £7,600.
Mrs Jones has enough money to pay for the first month but will not have sufficient funds to pay for the care home thereafter, but she does have a property worth £350,000.
Her family spoke with a TrustedCare funding specialist who determined that a move in loan would be available to assist them. Following the advice of the funding specialist they placed Mrs Jones property on the market, they also sought legal advice and a power of attorney was put in place.
Using the bridging loan an agreed amount of £30,000 was raised against the property so Mrs Jones could pay for her care home fees and move in without delay.
The property sold 7 months later and the move in loan was repaid using some of the sale proceeds.
Arrangement & valuation fees: £2,020.00
7 months interest: £2,260.96
Total cost to borrow the funds for 7 months = £4,280.96