If you pay for your care, your money might be tied up in your home.
This counts towards the amount you pay for care if your spouse or some other relatives do not live there. But you have options to avoid selling your home.
You must decide if these options are right for you and always consider getting independent advice first.
Pay for care with a council loan secured against your home
If you have to pay care home fees yourself, you could get a loan instead of selling your home.
A deferred payment agreement is a loan you pay interest on that uses a home you live in as security. It means you could rent out your home and are likely to qualify to get some benefits.
The loan has to be repaid once you sell the home, or you die.
How much you can borrow with a deferred payment agreement
The amount you can borrow depends on how much money is in your home. We will find out how much it is worth.
You can borrow the amount that we find that your home is worth, minus:
- 10% to cover the cost of selling it at the end of the loan
- any charges on it, like mortgages or equity release schemes
- £14,250, the amount of money in assets you can keep
The amount left should cover your care costs for 2 years and the loan interest, 0.15% above the gilt rate.
This is the total amount we can lend towards your care. We do this by paying some of your care home bill each week. You pay the rest with:
- money you’ve coming in, minus an agreed allowance up to £144 for your home’s upkeep and expenses
- any other money you have in accounts or assets. Find out what you pay towards care
How a deferred payment agreement loan works, step-by-step
Understand how a deferred payment loan works.
- Consider getting independent legal and financial advice.
- We check if you have the legal right to enter into the agreement.
- We check money in the home covers 2 years’ care costs and interest.
- You sign a legal agreement and pay a £804 fee to set up the loan.
- We place a legal charge on your home, like a mortgage.
- We pay something towards your care home bill every week.
- You ask us if anybody can live in the home and get it looked after.
- We tell you twice a year how much we’ve lent, including the monthly fee.
- We talk to you about what to do when 70% of the loan has been lent.
- You or your estate repay the loan if you sell the home or you die.
Ask us to find out more about a deferred payment agreement.
Tell us you are interested in a deferred payment agreement loan
Tell us if you are interested in a deferred payment agreement. You can speak to your adult social care worker or contact our Adult Access Team on 01305 221 016.
Get advice on other ways to pay for care using your home
If you have to pay for a care home and money is tied up in your home, you have other options.
You should always consider getting independent financial advice before making any big decisions.
Pay for more expensive care with somebody’s help
If you get financial help with your care from us, people you know can pay extra. These ‘top-ups’ could let you choose a more expensive care company.
How to make top-up payments for care
Other people can make ‘top-ups’ for your care if:
- they show us the money that they have coming in and in accounts (a financial assessment)
- the money does not come from your accounts as the person getting care
- they agree to pay the extra cost for at least 2 years
- they set up a direct debit to pay the top-ups every 4 weeks
If they ever stopped paying top-ups, we would look at your care. This might mean you have to move out of a care home or have a new carer.
If you are interested in top-ups, speak to your adult social care worker.