If you need to pay for your care but can't access your capital (for example if it's tied up in property you own) then a deferred payment agreement might be the right option for you.
Deferred payments mean that people should not have to sell their homes to pay for care in their lifetime.
You may be eligible if:
- you have less than £23,250 in capital (including savings and investments) apart from your former home
- you have a legal or beneficial interest in a property which is your main or only home
- we can place a legal charge on your property (similar to a mortgage) or in very exceptional cases we may consider other forms of security
- the cost of your care home has been agreed by us.
If you are eligible, we will pay an agreed amount towards your care home costs. The amount we pay will depend on the cost of the care home and the amount of equity in your property. You will then repay us when you choose to sell your home, or after your death. We charge interest and an administration fee, payment of both can be deferred as part of the agreement.
As part of the agreement, you will pay a weekly contribution towards your care, based on our assessment of what you can afford. You can keep up to £144 of your weekly income and if you rent out your home you will be allowed to keep a percentage of the rental income. However, you need to bear in mind that the more income you keep, the more you will have to repay later on.
If you would like more information please speak to your finance assessment officer or case manager. We recommend that you get independent legal and financial advice before the final agreement is made.
A deferred payment agreement is only one way to pay for care. To find out more about the options available, you can speak to a financial adviser or seek advice from an independent organisation.