Residential care costs and your home

Deferred payment agreement

A deferred payment agreement is a loan to pay for care home fees which is secured against your property. It may be suitable if you cannot afford residential care because most of your money is tied up in your home.

You can apply if:

  • you are a homeowner with less than £23,250 in savings and assets (capital), excluding the value of your property
  • no one else lives in the property, such as a spouse, partner, child or a relative aged 60 or over
  • your assessment shows you need long-term care in a care home

How it works

The council will pay for your care until you sell your home, or you pass away. You'll repay the loan at the end of the agreement.

Interest is charged on the loan and there are set up and administration fees.

Find out more in our factsheet:

Please contact us if you have any questions.

12 week property disregard

We do not include the value of your main or only home for the first 12 weeks you are in residential care. This only applies if you have less than £23,250 in savings and assets (capital), other than the value of the home you live in.


Was this page helpful?

Click or tap the rating which best represents your experience.