What are Deferred Payment Agreements?
A Deferred Payment Agreement is an arrangement with us which will allow you to use the value of your home to pay your care home fees.
Who is eligible?
Deferred payment agreements will suit some people’s circumstances but not all. You may be eligible for a deferred payment agreement if:
- you are receiving care in a care home (or you are going to move into one soon) or, at our discretion, supported living accommodation including extra care housing
- you own your own home and there is enough equity in the value of your home for the deferred payment agreement to last
- you have savings and investments of less than £23,250 (not including the value of your home)
How much can I defer?
What will a deferred payment agreement cost?
There are fees and charges linked to deferred payment agreements.
You will be charged:
- a fee for setting up a deferred payment agreement (currently £240)
- interest on any amount you are deferring
- other fees - for example if the Council has to obtain an independent valuation of your property
You can choose to pay the fees and interest when they are charged, or you can add them to the amount being deferred. Any charges being made only reflect the actual costs incurred by us to provide the scheme.
If your partner lives in your home
Can anyone else live in my home?
Can my application be refused?
We may refuse your application when:
- we are unable to secure a legal charge on your property
- you don’t own your home, or there is not enough equity in the value of that home for the Deferred Payment Agreement to last as long as needed
- your property can’t be insured
- you do not supply enough information to process your application
- you do not agree to the terms and conditions of the agreement
Things to consider
- a deferred payment agreement can give you time to put other arrangements in place for example it can be a bridging arrangement until you can sell your house or a long-term arrangement covering the whole time you need care
- if you decide to make it a long-term arrangement it could give you peace of mind for the future
- your property needs to be registered with the Land Registry to be eligible
- you will need a responsible person willing and able to look after your old home, including keeping it in good repair and properly insured
- the council does not give you a fixed sum of money upfront. The Council will pay your care fees on your behalf as and when they fall due. Interest is charged on the amount owed
- you repay the loan when you sell your house or when you die
- if other people have an interest in the property, all the owners will need sign up to the agreement so you should speak to them
- this might be a good time to make arrangements for someone to make decisions on your behalf if you are not able to do it for yourself in future