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Paying for residential and nursing care


Deferred payment agreements

You may want to consider applying for a deferred payment agreement to help you pay for the cost of your care. A deferred payment agreement is a way of preventing you from being forced to sell your home during your lifetime to meet your care costs. The Money Advice Service and GOV.UK provide more information on deferred payment agreements.

There are fees and charges linked to deferred payment agreements as shown in the table below. You can choose to pay the fees and interest when they are charged, or you can add them to the amount being deferred. Any charges made only reflect the actual costs incurred by us to provide the scheme.

Fee typeWhen chargedAmount
Arrangement feeUpon application£400 + valuation fee (a)
Administration fee50% equity revaluation (b)£21 + valuation fee (a)
Administration feeReview of agreement (c)£21 + valuation fee (a)
Administration feeAdditional statement requests (d)£21
% interest tateInterest will be charged from the start of the agreement and will be added on a compound basisCurrently 1.85% (e)

Notes

(a) Any valuation fees we incur will be recharged to you at the actual rate.
(b) When the total amount deferred equals approximately 50% of the value of your property, we need to revalue your property to review and possibly adjust the maximum amount that you are allowed to defer.
(c) When the total amount deferred equals approximately 70% of the maximum amount you are allowed to defer, we will carry out a full review of the agreement. This is to review the cost of your care, discuss your future plans and the effect these will have on future costs, discuss when you might be eligible for council support and consider if a deferred payment continues to be the best way to meet your
care costs.
(d) We will issue deferred payment statements on a six monthly basis. Any additional statement requests will have a charge.
(e) % interest rate is set nationally and reviewed on 1 January and 1 July each year.

You should always think about getting independent financial advice and information on paying for care.


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