Expert commercial mortgage solutions from Fox Davidson that understand the unique demands of care home acquisition, refinance, and expansion in today’s growing market.
Care Home Finance Experts – Fox Davidson
At Fox Davidson, we specialise in care home finance and mortgages for care homes. As award-winning commercial mortgage brokers, we help care home operators, investors, and first-time buyers secure the funding they need to purchase, refinance, expand, or develop care homes across the UK.
With the UK’s ageing population projected to see over 3.2 million people aged 80+ by 2041, the care home sector is booming – generating £15.9 billion in revenue in 2021 alone.
Whether you’re looking to buy an existing nursing home, convert a property, or manage cashflow, our team accesses the whole market to find the best deals.
Why choose Fox Davidson for your care home mortgage?
- Access to specialist lenders offering up to 80% loan-to-value (LTV).
- Competitive rates – fixed and trackers.
- Flexible terms up to 25 years, with interest-only options.
- Tailored solutions for experienced operators or newcomers with strong business plans.
📞 Call us for immediate expert advice.
📧 Email an outline of your requirements
What is Care Home Finance?
Care home finance encompasses a range of funding options designed specifically for the care sector. This includes mortgages for care homes to purchase or refinance properties, as well as loans for equipment, refurbishments, and working capital. As a care home finance broker, Fox Davidson navigates the complexities of the market, including Care Quality Commission (CQC) regulations, slim profit margins, and rising operational costs like staff wages and utilities.
Key benefits of securing care home finance through us:
- Spread costs over time to preserve cashflow.
- Fund expansions to meet growing demand – the UK needs 14,000 new care places annually by 2026.
- Access alternative funding like bridging loans for quick acquisitions or asset finance for essential equipment such as lifts and kitchens.
Types of Finance Available for Care Homes
We offer a comprehensive suite of care home finance solutions:
1. Mortgages for Care Homes
A care home mortgage is a commercial loan secured against the property. Ideal for buying trading care homes or investment properties.
- LTV: Up to 90% (typically 70-80% for standard cases).
- Terms: 1-25 years.
- Rates: From 2% above base rate.
- Requirements: Strong trading history, CQC rating, and at least 2-3 years’ management experience preferred.
2. Refinancing and Remortgaging
Release equity from your existing care home to fund expansions or improvements. We help with remortgaging to secure better rates or consolidate debts.
3. Development and Bridging Finance
For converting properties into care homes or auction purchases. Short-term bridging loans cover gaps, with options to roll into long-term mortgages for care homes.
When to Consider Care Home Finance
The care sector faces unique challenges: high overheads, regulatory compliance, and market competition. Finance is crucial when:
- Purchasing a care home (costs £400k-£2m, with 25-40% deposits).
- Expanding your portfolio – profit margins can reach 35-45% on fees.
- Managing cashflow during economic pressures like rising interest rates.
Even without prior experience, a solid plan and proof of skills (e.g., nursing qualifications) can secure funding.
First-time buyers: We guide you through lender requirements.
How to Get a Care Home Mortgage with Fox Davidson
- Initial Consultation:
Discuss your needs and assess eligibility.
- Documentation:
Gather trading accounts, bank statements, CQC reports, business plans, and projections.
- Lender Matching:
We compare options from high-street banks, specialist lenders, and alternative providers.
- Application and Approval:
Submit and negotiate terms – funds released in weeks.
- Ongoing Support:
Post-completion advice for growth.
Required documents typically include:
- 3 years’ accounts.
- Recent bank statements.
- Proof of deposit (20-40%).
- CQC inspection reports.
- Personal credit history.
Care Home Finance in Action
Why Choose Fox Davidson as Your Care Home Finance Broker?
Our clients trust us for market-leading rates and high quality advice.
- Award-Winning Team: Multi-award winners with decades of experience in the care sector.
- Market Wide Access: Not tied to one lender.
- Tailored Advice: From start-ups to large portfolios.
- Fast Decisions: Finance in a hurry? We handle urgent cases.
- Client-Focused: Excellent reviews on google and trip advisor.
Meet our experts and see why we’re the go-to care home finance broker.
Frequently Asked Questions (FAQs) on Care Home Finance
Typically 25-40%, but lower with additional security or strong trading history.
Preferred but not essential. Lenders value a robust business plan and relevant skills.
Yes, we specialise in all care types, including children’s homes.
From enquiry to funds: 4-12 weeks, faster for bridging loans.
Around 35-45% on fees. For a 10-bed home, this could mean £50,000-£60,000 annual profit before interest.
Up to £25m, depending on the property value, your finances, and CQC compliance.
Get the Care Home Finance You Need Today
Ready to secure your mortgages for care homes?
Contact Fox Davidson, your specialist care home finance broker. 📞 Call – Speak to an Advisor Today! 💻 Complete our enquiry form or 📧 Email with an outline of your care home funding requirements.
Fox Davidson are members of the NACFB
