Deferred payment schemes for adult social care

Borrowing and fees

Costs and interest

We will recoup costs, including legal, property valuation and ongoing running costs, through administrations charges. These charges will be added to the total amount deferred as they accrue.

We won't charge more than the national maximum interest rate, which changes every 6 months.

Interest will be added on a compound basis (monthly) and accrues:

  • on the amount deferred even when you’ve reached the equity limit
  • during breaks in care or funding
  • after death, up until the amount is repaid to us

You will be sent regular statements showing your total debt, detailing accrued care debts, interest and fees. We can supply statements on request (e.g. you are selling your property).

Maximum amount you can borrow

The amount you can defer will depend on the value of your home, which determines your equity limit.

CalculationExample amount
The property’s current market value£165,000
minus 10% of the current market value- £16,500
minus £14,250- £14,250
equals the equity limitTotal: £134,250

The equity limit:

  • protects you from not having enough money to pay sale costs of the property (e.g. solicitor’s fees)
  • allows you to continue to pay interest
  • protects us against a drop in housing prices and the risk that we may not get all of the money back.

Last updated 15 November 2022