The local authority also has the authority to offer a deferred payment agreement to a person who lives in a nursing home or assisted housing program and who does not meet all the criteria established by the government. The legal guidelines suggest the following considerations when deciding whether or not to offer a deferred payment agreement: Once your deferral is in effect, you will still need to make your planned monthly payment to keep your mortgage up to date. Payments related to interest and local authority fees may also be deferred if the person so requests and the local authority has subscribed to them. A deferred payment agreement is just one way to pay for care and adapts better to the situation of some people than others. A payment deferral updates your mortgage and delays the repayment of certain monthly overdue principal and interest payments, as well as other amounts we have paid on your behalf as part of the monthly overdue payments. You are responsible for paying overdue amounts on the mortgage due date or earlier when selling or transferring ownership, refinancing the mortgage, or paying off the outstanding interest-bearing principal balance. In accordance with article 34 of the Care Act, a universal system of payment deferral has been established. A deferred payment system allows the person submitting it to delay some or all of their payments to the local authority for the care and support services they receive. This gives them time to get used to their situation and consider their options without having to rush their home.
Some people make a deferred payment agreement until they die, but others use it as a “bridge loan” while deciding what is best to do and exploring the options available to cover the cost of care (for example, they may be able to arrange the release of another asset to cover the costs). The length of time a person has a deferred payment agreement is entirely theirs. Where the local authority refuses further deferred payments on the basis of a deferred payment agreement, it should give at least 30 days` notice that further deferrals will be deferred; and should give the person an indication of how their care costs are to be covered in the future. Depending on their situation, the person may either receive assistance from the local authorities to meet the cost of their care or have to bear their costs from their income and assets. The deferred payment system is currently available to all people living in a nursing home who meet clear criteria set by the government (see below). If people living in a retirement home meet the criteria for a deferred payment agreement, the local authority must propose one. The leniency of a mortgage is different from a deferral. Forbearance is an agreement negotiated between the borrower and the lender to temporarily defer mortgage payments rather than seize a property. Lenders are more likely to grant leniency to borrowers who have a good payment history. .