Equity release may impact Pension Credit, Council Tax Discount and Universal Credit

He stated these individuals may have the potential to keep their benefits while sorting out arrangements for their home.

He said: “One thing people don’t realise is that with a lifetime mortgage, you have choices.

“You can either release as a lump sum, say £20,000, taking all of that and spending it as you want, or you could look at a drawdown facility.

“With a drawdown facility, if you wanted £20,000, you might say take £10,000 at the start, and then have a drawdown for another £10,000 that stays with the lender for you to access when you need it.

“The money in the reserve facility does not affect any benefits you receive. So even if you are, say, on Pension Credit, you could take £10,000 at the start, perhaps £30,000 in reserve, and then once you use the first part, you may choose to take another £5,000 or £10,000 and just keep doing it that way.

“By doing it that way, you’ll always remain under the benefits allowance, and not forego anything you’d otherwise be entitled to.”