Deferred payment agreement

From the section: Paying for care

In this section:

Deferred payment agreement

A deferred payment scheme can be useful if you have savings of less than £23,250 and all your money is tied up in your property. 

We will pay your care home fees and claim the money back when you choose to sell your home. This could be during your lifetime or after you have died. 

Eligibility  

You may be entitled to deferred payments if you: 

  • have no more than £23,250 in savings and investments (excluding your property)
  • have had a needs assessment that shows you need to be in a care home or nursing home permanently
  • own part of or all of a property that was your main or only home and is registered with Land Registry
  • have capacity to enter into a deferred payment agreement or have someone who can legally sign the agreement on your behalf, such as a Lasting Power of Attorney 

How it works  

If you are entitled to a deferred payment agreement, we will put a legal charge on your home. This is like a mortgage and ensures we receive the right amount of money after your home is sold. 

Basic terms of agreement  

We will secure the loan against your home, with an equity limit of 90 per cent of its value. We will provide a valuation minus: 

  • the lower capital limit (currently £14,250)
  • any other charges against the property such as a mortgage 

How to apply  

As a deferred payment agreement is a legally binding contract, it’s important to think carefully about the decision. You may wish to get advice from an independent financial adviser (IFA). 

Our Community Advice Hubs can also provide support. 

To find out if you’re eligible for the deferred payment scheme, contact our adult social team on: