How it works

If you are eligible we will lend you money to pay for your care home costs. You can delay repaying us until you choose to sell your home, leave residential care or until after your death.

The first 12 weeks

When we carry out your financial assessment we will not take the value of your property into account for the first 12 weeks of your permanent stay in a care home. This is to give you time to decide what you want to do with your property now that you no longer live there.

You might want to look at your options during these 12 weeks including:

• Asking for independent legal and financial advice
• A Deferred Payment Agreement  or another type of loan taking into account the value of your home
• Selling your property
• Renting out your property to help you to meet your care costs

After 12 weeks

If you meet the eligibility criteria after the first 12 weeks we will offer you a Deferred Payment Agreement. This is under the following terms:

• Maximum loan – the maximum amount we can lend you is equal to the value of your home minus 10% for selling costs and the nationally set ‘lower capital limit’ which is currently £14,250
• The debts must be repaid
• Once your property has been sold you will have 90 days to repay the money (deferred amount)
• If the debt is not paid after 90 days we will begin a formal debt recovery process to recover the debt, which may include court action