Deferred payment agreement
Get deferred payment from Dorset Council
A deferred payment agreement (DPA) is a loan from Dorset Council.
You can have a DPA if you:
- need to move into a care home permanently
- have been assessed as having to pay the full cost of your care
- cannot afford to pay care fees and you own your own home
We will not give you any cash. We will pay part of your care bill.
You will also pay towards your care, from your income and savings. The amount you pay is worked out using a financial assessment.
Find more information on paying for care and support services.
Not eligible for deferred payment
You cannot have a DPA if:
- the house is unregistered - contact a solicitor to register it with the Land Registry
- the property is owned by more than one person - all owners must agree to the DPA
- the house is jointly owned with a partner who has died - contact a solicitor to change the ownership records
- you do not have the mental capacity to make a decision about the DPA, and there is no deputy or power of attorney - someone has to be legally appointed to act for the person
Reasons to select deferred payment agreement
DPA can be a good solution as you:
- can rent out your home to earn extra income
- may be able to choose a more expensive care home
Costs for deferred payment agreement
It costs £804 to set up the agreement, and then £100 per year. Interest will be added to your loan.
The LPA cannot pay more towards your care than your house is worth. When we have lent you 70% of the value of your home, we will review your situation.
End the deferred payment agreement
The agreement ends when you die, or you can end the agreement at any time you want.
For example, you might want to sell your home.
You must pay us back the money that we have paid for your care.
Get financial advice
A deferred payment agreement can be complicated. It depends on your situation.
It is important to get expert advice before you make a decision. You can get independent financial advice from Money Helper.
Phone: 0800 138 7777