If all your money is committed to the property and you don`t want to sell your home, a deferral of payment could help you pay for the care. But this is a great decision that needs to be carefully considered. Note the pros and cons before following this path. If you apply, the local authority will conduct an assessment of your financial situation. Councils should offer deferred payments if you meet the following criteria: We calculate interest on the deferred amount for the entire period during which the agreement is in effect. Interest is part of the amount you owe. We calculate the maximum national interest rate. The interest rate is updated twice a year in the Reports of the Office of Budget Responsibility. We will apply discounted rates to your debts from January 1 and July 1. The interest rate may therefore vary between the start of discussions with us and the date the contract is signed.

A deferral payment contract is an agreement with the local authority that allows people to use the value of their homes to pay the cost of care homes. We charge your interest on the deferred amount, including any administrative costs you have deferred. Interest is paid daily. More information on debt collection can be found in Schedule D of the Care Act 2014. We will need to check whether the equity that is available in the security of the person (usually his property) is an adequate guarantee for the deferred payment contract. We will apply a capital cap to ensure that a portion of the value remains in the property used as collateral, in addition to the amount deferred to the Data Protection Authority. Under the Care Act, local authorities may charge administrative fees for the organization and implementation of the deferred payment contract and interest on accrued debt securities. By law, administrative costs should not exceed the cost of making an adjournment available, and interest will be consistent with a national standard set by the government. A territorial authority cannot deny a credit CCA to a person who meets all the mandatory criteria for a CCA in accordance with Regulation 2, paragraph 1, of the DPA Regulation (including consent under the agreement).