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Deferred Payment Scheme is this a cheap way to borrow?

Idpullthecurtain
Idpullthecurtain Posts: 171 Forumite
100 Posts Second Anniversary Name Dropper Photogenic
Parent is going into Nursing home soon.
The property will be used to fund this.  We are exploring options.  Seems like the Gov Deferred Payment Scheme is our preferred option.  Anyone have experience of this, I guess there isnt a more cost effective way to borrow the funds?  We wouldnt get it cheaper with a bank it seems (gov scheme is 4.25% )? 

Just wondering if anyone has experience of any unforseen issues with it?  TIA. 

Comments

  • elsien
    elsien Posts: 36,205 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    It’s not a government scheme it’s local authority run and the amount of interest varies between councils.
    It is not usual to borrow the money directly, although it is an option. Most people use the more traditional charging arrangement. 


    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Idpullthecurtain
    Idpullthecurtain Posts: 171 Forumite
    100 Posts Second Anniversary Name Dropper Photogenic
    elsien said:
    It’s not a government scheme it’s local authority run and the amount of interest varies between councils.
    It is not usual to borrow the money directly, although it is an option. Most people use the more traditional charging arrangement. 


    Thanks.  I know.
    Isnt a local authority scheme, also a Government scheme too?!

    I realise the traditional charging method is as such.  However it is essentially a loan scheme.  The interest doesnt vary, its centrally set by Government.
    Sorry if you didnt like my wording.
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