Funding Private Healthcare with Equity Release 

As many of us have encountered already, waiting lists for medical care across the NHS are reaching an all-time high, often forcing the hand of retirees to move towards private healthcare as the only way to get treatment quickly. 

One key benefit of private healthcare is the ability to avoid long delays and access treatment much sooner, which can lead to improved patient outcomes and a better overall experience. 

From knee operations to hip replacements and everything in-between, waiting lists in the NHS run into the months and years, in comparison to the days and weeks in private healthcare. Which is why many over 55’s are searching for ways to fund their private medical treatment, such as using their property wealth through equity release. 

Why retirees are choosing to get private medical treatment in the UK 

For many over 55s in the UK, long NHS waiting times can make it difficult to get the care they need when they need it most. 

Living with ongoing pain or limited mobility can take away from the enjoyment of retirement, which is why more people are choosing private healthcare. With the addition of being passed between teams and long waiting times between appointments, the chance to be seen quickly and regain independence often feels worth the investment, especially when health and quality of life are at stake. 

Private healthcare can also provide access to personal care services, supporting independence and well-being for retirees. 

Access to specialist treatment  

For many retirees, accessing specialist treatment through the NHS isn’t always straightforward. Getting a referral from a GP can involve a lot of paperwork, delays, and sometimes even lost referrals, which can be frustrating when you just want to focus on your health.  

How quickly you’re seen often depends on several factors, how urgent your GP considers your case, the length of local waiting lists (which can stretch up to 18 weeks for non-urgent care), and whether the treatment is funded by NHS England.

On top of that, not every hospital offers specialist services, as they require particular skills and facilities. That’s why many retirees choose to go private, where access to specialist care is often much faster, more straightforward, and tailored to their needs. 

Quicker treatment 

With NHS waiting time targets, such as the 18-week limit for non-urgent referrals, often falling short, many retirees are choosing private healthcare to avoid lengthy delays. By going private, they can bypass the queue and access treatment much more quickly, at a time and place that suits them. This faster care not only brings peace of mind but also helps retirees maintain their health, independence, and quality of life. 

Freedom of choice 

Many over 55s value the freedom and convenience that private healthcare provides. Instead of being limited to certain hospitals or long referral processes, they can choose where and when to be treated. This flexibility not only saves time and stress but also allows them to feel more in control of their health and wellbeing. 

24/7 support and clear pathways 

Retirees often turn to private healthcare for the reassurance of 24/7 support and clear treatment pathways. While the NHS is stretched and sometimes unable to provide round-the-clock guidance, private providers usually offer dedicated helplines and a more personal touch. This can be especially important when it comes to mental health support, where NHS services are often limited and reliant on charities to provide one-to-one support. With private care, many feel they have someone to turn to at any time, giving them greater peace of mind. 

Choosing the right equity release option for you 

There are various equity release options available, including lifetime mortgages and home reversion plans.  

Lifetime mortgages allow you to borrow money against your home while retaining ownership, and the loan is repaid when you pass away or move into long-term care. If you choose to proceed with a lifetime mortgage and you have any outstanding mortgages or loads secured against the property, these must be paid off, usually using the funds released from the equity release plan. 

A home reversion plan involves selling part or all of your property to a home reversion provider in exchange for a lump sum or regular payments. You can continue living in your home rent free until you pass away or move into long-term care. When the property is eventually sold, the home reversion provider receives their share based on the percentage they own. 

The money released from equity release can be used for a range of things including to fund a care plan, including care needs and home adaptations such as installing a walk-in shower. However, using equity release may affect your ability to qualify for local council support or means-tested benefits. 

It is crucial to choose the right equity release plan that suits your needs and circumstances, and to consider factors such as means-tested benefits and care costs. To ensure you have a full understanding of equity release and the implications, we always recommend speaking to a whole of market, independent equity release adviser.  

Using equity release to fund your private healthcare needs 

There are three main types of private healthcare that homeowners ages 55+ choose to use equity release to fund, this includes private medical treatment, in home care, and care home costs.  

Private medical treatment 

Retirees often turn to private healthcare for many different types of treatment. While it can mean quicker access and a smoother experience, the costs can run into thousands of pounds—far more than most pensions or savings can cover. That’s why some people look at options like equity release to help manage these expenses. Common private treatments include: 

• Dental treatment – from check-ups to more complex procedures 
• Chronic disease management – ongoing care and monitoring 
• Medications – quicker access to certain prescriptions 
• Surgery – ranging from minor operations to more complex procedures 

In home care and care home costs  

For retirees aged 55 and over who own their home, releasing equity can be a way to access the cash tied up in their property to help cover private medical care, in-home care, or care home fees. Equity release can provide lump sums or regular payments that supplement savings or pensions when those aren’t enough.

While it can ease the financial burden of paying for carers at home or permanent residential care, it’s important to understand that using equity release may affect future entitlement to local authority support and benefits.  

Read more about using equity release to fund care costs.

Private Healthcare Costs 

The cost of private healthcare in the UK can be significant, with procedures such as cataract surgery costing over £2,000 and hip replacements over £12,000. For many homeowners, these expenses are difficult to cover with savings alone. Equity release offers a practical way to access funds for private medical treatment, whether you need a one-off operation, ongoing care, or support with in-home care. 

By releasing equity from your property you can fund private healthcare, making it easier to pay for treatments, home adaptations, or domiciliary care when you need it most. It’s important to weigh the costs and benefits of private healthcare and to seek expert advice on the best funding options available, including equity release offers that suit your needs and financial situation. 

The pros and cons of using equity release to pay for private healthcare 

Whilst equity release can be a great option for funding your private healthcare needs, it’s important to consider the pros and cons of using equity release.  

Advantages of Equity Release 

Equity release is a popular way for homeowners over 55 to unlock money from their property without having to sell it. The tax-free cash can be taken as a lump sum or regular payments, giving retirees the flexibility to cover a wide range of expenses, from private medical insurance and urgent healthcare costs to in-home support, residential care, or nursing home fees. Many find it provides peace of mind, knowing they can fund the care they need while continuing to live in their own home. 

Key benefits include: 

• Health conditions may allow you to release more money 
• The interest can be managed with monthly payments if you wish 
• It’s tax-free 
• You can protect some of your home’s value for inheritance purposes 
• No Negative Equity Guarantee 

The disadvantages 

While equity release can be a useful way to fund private healthcare and care costs, it’s important to be aware of the potential downsides. Unlocking money from your home may not always be the right fit for everyone, and the long-term impact on your finances and family should be carefully considered. 

Key drawbacks include: 

• Reduced inheritance for your loved ones 
• Possible effect on entitlement to means-tested benefits 
• Moving home in future may be more difficult 
• Borrowing limits may mean you can’t release as much as you’d like 
• Potential impact on how you fund long-term care in later life 

Independent, whole of market advice at Bower Home Finance 

If you’re considering equity release to help cover health care or care costs, it’s important to get clear, professional guidance. Our friendly advisers at Bower Home Finance are here to explain how equity release works, what it could mean for your personal circumstances, and whether it’s the right option for you. 

We provide no-obligation advice and can guide you through the available plans, helping you compare providers and choose the one that best suits your needs. 

You can begin today by trying our easy-to-use equity release calculator or by requesting a call back from our team for a personal chat.