Care Home Finance Broker: Large Loans

Specialist Care Home Mortgage Broker

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At Fox Davidson, we specialise in care home mortgages for established operators running care homes with Good to Outstanding CQC reports, borrowing upwards of £2.5m.

Summary of Key Points

• Specialist care home finance broker service tailored for loans from £2.5m to £25m+
• Dedicated focus on established care home operators with Good or Outstanding CQC ratings
• Access to specialist lenders who understand the financial and regulatory complexities of the care sector
• Bespoke funding solutions for acquisitions, refinancing, portfolio expansion, and development projects
• A care sector market driven by the UK’s ageing population and increasing demand for quality care beds
• Benefits include faster approvals, improved loan terms, and funding structures aligned with your operational cashflows
• Requirement for minimum 2 years of audited accounts and a strong trading history
• Rising operational costs and regulatory compliance continue to impact funding needs
• We offer a free, no-obligation finance assessment and expert advice tailored to your care home finance questions

📞 Call for immediate expert advice. 💻 Complete our enquiry form 📧 Email outline your requirements

If you are an established care home operator seeking large loans, this page has been crafted specifically for you. As an award-winning care home finance broker, Fox Davidson ensures you gain access to lenders who truly understand the sector’s unique financial and regulatory requirements. This expertise results in better terms, quicker approvals, and funding structures tailored to your operational needs.

A care home finance broker like Fox Davidson acts as your trusted partner, connecting care home operators, investors, and individuals with lenders who possess deep knowledge of the care sector’s financial and regulatory landscape.

The care home sector is a specialised area within healthcare real estate, characterised by complex regulatory, operational, and funding challenges. For established operators with proven trading accounts and strong regulatory compliance, securing the right funding for acquisitions, refinancing, or portfolio expansion can often feel overwhelming when approaching traditional high street banks.

These lenders frequently lack the sector expertise to accurately assess care home assets, leading to lower loan-to-value offers, restrictive covenants, and lengthy approval times that do not meet the needs of operators aiming to act decisively in a competitive market.

The care home sector generated £15.9 billion in revenue in 2021 alone, and the market outlook through 2026 remains favourable for well-run operators. The UK’s ageing population continues to drive growing demand for quality care beds, with projections indicating 2.7 million people over 80 by 2040, up from 1.6 million in 2020.

More individuals are moving from their own homes into supported living arrangements, further increasing demand. With the Bank of England base rate stabilising around 3.5–3.75%, established operators with Good or Outstanding CQC ratings can plan long-term with greater confidence.

At Fox Davidson, we bring award-winning commercial mortgage expertise to this sector, backed by deep experience in large care home and healthcare transactions.

As your specialist care home finance broker, we add tangible value by providing whole market access to specialist lenders and private banks, structuring complex deals that align with your operational cashflows, and negotiating terms based on your CQC performance and trading history rather than generic commercial property metrics.

Our funding options for care home operators include mortgages for care homes, commercial loans, and other tailored solutions for purchase, refinancing, development, and operational needs. Selecting the right property and securing the right funding are both critical steps in successful acquisitions. Rising operational costs, such as staff wages and utilities, are key challenges for care home operators and directly influence funding requirements.

If you are an established operator with Good or Outstanding CQC ratings and at least 2 years’ audited accounts, we invite you to request a free, no-obligation assessment of your care home finance. Our team is ready to provide expert advice and immediate professional guidance tailored to your specific care home finance needs.

📞 Call for immediate expert advice. 💻 Complete our enquiry form 📧 Email outline your requirements

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Why Use a Specialist Care Home Finance Broker for Large Loans?

Over the past decade, high street banks have significantly retreated from lending for large care home transactions. Their standardised credit models often struggle to accommodate the nuances of care sector economics including CQC ratings, local authority fee structures, staffing ratios, and occupancy volatility which require specialist understanding that generalist commercial lenders rarely possess.

The care home sector faces unique challenges, including high overheads and intense market competition, which further complicate funding. This often results in a frustrating experience for operators, ending in rejections or terms that fail to reflect the true strength of a well-run operation.

Large care home transactions in the £2.5m–£25m+ range involve complex lender criteria that demand dedicated expertise:

• CQC rating interpretation – We understand how recent inspection reports, enforcement history, and rating trajectories impact lender appetite
• Occupancy and fee income analysis – We model sustainable income streams across private pay, local authority, and NHS-funded residents
• EBITDA and margin assessment – Presenting your trading performance against sector benchmarks (typically 35–45% gross margins on care fees)
• Group structure complexity – Navigating multi-entity portfolios, inter-company arrangements, and shareholder dynamics

As your specialist finance broker, Fox Davidson filters the entire market on your behalf, identifying lenders comfortable with leverage up to 75–80% LTV, interest-only structures for cashflow preservation, and multi-site portfolios across the UK.

We have established relationships with niche lenders in the care home sector and can create bespoke financing packages tailored to the unique needs of healthcare operators. This targeted approach delivers significant time and cost savings.

Our team prepares lender-ready packs, anticipates underwriter questions before they arise, and negotiates pricing, covenants, and amortisation profiles that align with your operational reality.

We also negotiate better terms and repayment options on your behalf and design tailored funding structures such as equity release and refinancing to meet your specific cash flow and operational goals.

For experienced operators, our core role is maximising borrowing capacity against strong cashflows without compromising covenant headroom or operational resilience. Our specialist care home brokers understand regulatory compliance requirements, local authority funding dynamics, and what constitutes the best deal structures for different operator profiles, then present the story behind the numbers effectively to credit teams who make lending decisions.

Throughout the process, we provide expert advice to address your specific questions and ensure you receive the most suitable financial solution.

Why Choose Fox Davidson for Large Care Home Finance?

Fox Davidson focuses exclusively on large, complex commercial mortgage and bridging facilities, with a dedicated emphasis on established UK care home operators.

As a commercial finance broker with extensive experience across the healthcare property sector, we understand precisely what lenders need to see and how to position your business to secure funding on competitive terms.

The care home sector is a specialised area within healthcare real estate, characterised by unique regulatory, operational, and funding complexities. With strong growth prospects driven by demographic trends, sector-specific expertise is essential for sourcing funding, negotiating better deals, and providing ongoing financial support.

As specialist brokers, we have access to a whole-of-market range of lenders, offering more options than brokers tied to a limited network.

Our minimum loan size policy is straightforward: we handle care home mortgages from £2.5m up to £25m+. This ensures our resources remain focused on substantial, multi-million-pound mandates where our expertise delivers the greatest value. For qualifying care home clients where lender-paid remuneration applies, we operate as a fee-free commercial mortgage broker our remuneration comes from the lender.

What sets Fox Davidson apart:

Capability	Benefit to Operators
£2.5m–£25m+ exclusive focus	Resources dedicated to complex, high-value mandates
Access to specialist lenders and private banks	Financing options unavailable through generic brokers
Healthcare sector team access	Lenders with deep understanding of CQC, occupancy, and fee dynamics
Award-winning founders (Wesley Davidson, Sarah Fox-Clinch)	Proven track record in multi-million commercial deals
Property finance expertise	Nursing homes, dementia units, HMOs, supported living
Partner-led service	Discreet, responsive, with structured reporting to boards and advisers
Whole-of-market access	Wider choice of lenders and funding solutions for care home operators
Negotiation of terms	Broking services include negotiating competitive interest rates and flexible repayment terms for care home clients

We work across the UK with care providers operating trading care homes, nursing homes, dementia care units, and portfolios including HMOs and supported living tied to core trading operations. Our approach is partner-led and highly responsive, with structured reporting to boards, shareholders, and professional advisers including lawyers, accountants, and corporate finance firms.

Eligibility Criteria: Which Care Home Operators We Can Help

Our strict eligibility criteria enable Fox Davidson to secure funding from so many lenders on terms that reflect genuine quality. By presenting only low-risk, high-performing operators to our lender panel, we achieve higher approval rates and better pricing than would be possible with a broader, less filtered approach.

Trading History Requirements

• Minimum 2 years of audited accounts for the borrowing entity or group
• 3+ years preferred for loans above approximately £10m
• Clear audit trail demonstrating consistent business performance

CQC Standards

• Current or very recent Care Quality Commission rating of Good or Outstanding
• No “Requires Improvement” or “Inadequate” ratings at the home(s) being financed
• No serious ongoing enforcement action or major compliance concerns
• Lender data shows Outstanding-rated homes have default rates of approximately 1.5% versus 4.2% sector-wide

Financial Metrics Lenders Expect

Metric	Typical Requirement
Occupancy	85–95% for mature homes
EBITDA margins	35–45% on care fees
Debt service coverage	Minimum 1.25x, ideally 1.5x+
Cashflow	Positive and sustainable

Operator Profile

• Experienced management team with a proven track record in residential and/or nursing care
• Robust governance structures
• Clean credit histories for directors and shareholders
• UK-based operations with appropriate regulatory registrations

Types of Businesses We Consider

• Trading residential care homes
• Nursing homes
• Dementia care units
• Small portfolios with demonstrable income from day one

Explicit Exclusions

We do not progress enquiries from:

• Start ups or new entrant operators without sector management experience
• First time buyers entering the care industry
• New builds with no linked trading track record
• Loans below £2.5m
• Distressed assets with poor CQC ratings
• Speculative non-trading developments

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Types of Large Care Home Finance We Arrange

Fox Davidson structures several core finance types for care homes, often combining term debt with bridging or development finance facilities to meet complex acquisition and growth objectives. We offer a range of funding options for care home operators, including commercial loans, mortgages, and finance for equipment or refurbishments, tailored to the unique needs and regulatory requirements of the care sector.

Each structure leverages the operator’s trading history and CQC performance to achieve the best deal available in the market. A strong funding proposal is essential for a successful commercial loan application, helping to secure the most favourable terms from specialist lenders.

Acquisition Finance

• Funding for the purchase of individual trading care homes or portfolios in the £2.5m–£25m+ range. These facilities are typically structured against EBITDA multiples and property value, with options for both share purchases and asset purchases depending on tax and operational considerations.
• Suitable for purchasing the right property—an existing care home that aligns with your goals and offers immediate income generation
• LTV typically 70–80% for strong operators
• Interest-only options available for initial periods
• Terms up to 25 years with fixed or tracker rates

Care home acquisitions involve complexities such as regulatory requirements and staffing structures, which should be carefully considered during the purchase process.

Refinancing and Remortgaging

• Established operators refinance existing bank debt to improve pricing, extend terms up to 20–25 years, switch to interest-only periods, or release equity for growth and shareholder reorganisation. This preserves operational cashflow because structures can be aligned with strong revenue streams.
• Release capital locked in existing property for reinvestment
• Consolidate debt across a care home portfolio
• Cost effective restructuring of legacy facilities
• Support succession planning and shareholder changes

Portfolio Expansion and Development

• Facilities for adding wings or beds to existing homes, undertaking major refurbishments to meet 2024–2026 standards, or developing new homes backed by a strong existing group. Lenders favour expansion projects backed by proven occupancy and CQC performance.
• Development finance for new builds tied to existing operations
• Refurbishment funding for essential equipment and facility upgrades
• Capacity expansion to address local bed shortages
• Phased drawdown aligned with construction milestones

Bridging and Short-Term Finance

• Regulated and unregulated bridging is available for time-sensitive acquisitions—auction purchases, off-market deals, or situations where CQC registration or operational changes need to be completed before term funding is put in place.
• Rapid completion for competitive purchase situations
• Bridge to term structures with clear exit routes
• Flexibility for complex transaction timings
• Suitable for acquiring distressed but recoverable assets

Hybrid Structures

• For larger, phased projects, Fox Davidson may arrange funding combining senior debt, mezzanine finance, and short-term facilities to align with cashflow and build-out schedules. These structures support ambitious growth plans while managing risk at each stage.

Key Benefits for Established Operators in 2026

The 2026 market presents genuine opportunities for well-run care home groups. The care home sector continues to experience ongoing growth, driven by robust demographic demand that outstrips supply—the UK requires thousands of additional high-quality care places annually through the 2030s.

However, rising operational costs, such as staff wages and utilities, are impacting profitability and increasing the need for effective funding solutions. Additionally, increased scrutiny from the Care Quality Commission has made it more challenging for operators to maintain high ratings.

Lenders have renewed appetite for care providers with proven trading histories and strong CQC performance, translating into competitive rates and flexible structures for qualified operators.

• Loan-to-Value Advantages: Strong operators can access LTV ranges up to approximately 75–80% on quality assets. Higher effective leverage is possible when additional property security is offered, reducing cash equity requirements and preserving capital for operational investment. Compare this to high street banks typically capping at 60–65% LTV with more restrictive terms.
• Interest-Only Options: Interest-only structures—either full-term or for an initial 5–10-year period—support reinvestment in staffing, regulatory compliance upgrades, and capital expenditure without squeezing operational cashflow. For operators with debt service coverage above 1.5x, these structures are readily available from specialist lenders.
• Competitive Rate Environment: With the base rate stabilising at 3.5–3.75%, margins over base (typically 2.25%–3.50% depending on risk profile and structure) can be negotiated for larger, de-risked portfolios. Market leading rates are achievable for operators presenting the strongest credentials.
• Flexible Covenants and Amortisation: Established operators can secure funding structures aligned with their occupancy patterns, local authority fee review cycles, and capex programmes. This flexibility supports sustainable growth rather than creating operational constraints.
• Alignment with Sector Demand: The UK’s demographic trajectory means 2026–2030 represents a pivotal period for scaling operators with Good/Outstanding CQC. Finance structured correctly today can underpin growth that meets society’s care needs while generating strong returns for operators prepared to invest in quality care.

The Brokered Process: From Initial Enquiry to Completion

Fox Davidson manages £2.5m+ care home finance mandates through a structured process designed to maximise lender appetite and minimise completion timescales. Here’s what to expect when you work closely with our team.

Step 1: Initial Consultation

A 30–60-minute call or video meeting to understand your group, review CQC reports, outline objectives (acquisition, refinance, expansion), and confirm that minimum criteria are met. This is a no-obligation discussion to establish whether our service is the right fit for your financial needs.

Step 2: Information Gathering

We request key documentation to build a comprehensive lender-ready pack:

• 2–3 years’ audited accounts
• Management accounts to latest quarter
• Occupancy data and trends
• Fee structure by funding source
• Staffing costs and ratios
• Property details and existing charges

Step 3: Lender Selection and Indicative Terms

Fox Davidson approaches a targeted panel of healthcare-focused specialist lenders and private banks to obtain heads of terms. We focus on rate, LTV, covenants, and required security, presenting your operation in the best possible light. With access to so many lenders, we can compare options across the whole market.

Step 4: Full Application and Underwriting

We prepare a detailed credit proposal and funding proposal, coordinate valuations (typically RICS healthcare specialists), and handle underwriter queries on trading performance and CQC. Our expert guidance through this stage addresses the unique challenges lenders raise about care sector transactions.

Step 5: Legals and Completion

The legal process includes review of share or asset purchase agreements, CQC registration considerations, and coordination with your solicitors. Typical timescales run 8–16 weeks from acceptance of heads of terms for larger deals, though complex group restructurings or planning-heavy developments may take longer.

Step 6: Post-Completion Support

Fox Davidson provides full support beyond initial completion. We can assist with later refinances, top-up funding for capex, or restructuring as your group grows or as rates move. Consider us a trusted partner for your ongoing care home finance requirements.

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Required Documentation and Information

Presenting a robust, well-organised information pack significantly improves lender appetite and speeds up credit approvals. Operators who provide comprehensive documentation from the outset typically achieve faster completions and more competitive terms.

Financial Statements

• 2–3 years of audited accounts for the operating company/group
• Up-to-date management accounts (ideally within 3 months)
• Aged debtors and creditors analysis
• Bank statements (typically 6–12 months)
• Tax returns and corporation tax computations

CQC Documentation

• Most recent CQC inspection reports for each home
• Evidence of Good or Outstanding ratings
• Registration certificates
• Commentary or action plans for any historic non-compliance (if applicable but resolved)
• Staff qualification and training records

Operational Data

Data Type	Detail Required
Occupancy	Current and 24-month historical levels
Fee rates	Weekly fees by funding source (private, LA, NHS)
Staffing	Ratios, costs, turnover rates
KPIs	Bed occupancy, staff-to-resident ratios, complaints

Property and Valuation Details

• Addresses and bed numbers for each care facility
• Registration categories (residential, nursing, dementia)
• Existing charges over the property
• Recent property valuations or building surveys
• Title information and lease details (if applicable)

Business Plan and Projections

• Forward-looking financial forecasts (typically 3–5 years)
• Revenue and cost projections
• Planned capex and investment
• Debt service coverage ratio modelling
• Sensitivity analysis for occupancy and fee variations

Directors’ and Shareholders’ Information

• CVs evidencing sector experience
• Personal asset and liability statements (where required)
• Credit reports for all directors
• Explanations of any historic credit issues
• Shareholding structure and group organograms

Case Studies: Large Care Home Finance in Practice

These anonymised examples illustrate the types of transactions Fox Davidson arranges for established care home operators and how our broker role influences outcomes.

Case Study 1: £5m Management Buy-Out – Surrey Nursing Home

A 60-bed nursing home in Surrey was acquired through a management buy-out in 2025. The incoming team had extensive sector experience but needed to secure funding against the trading home rather than relying on significant personal capital.

Key details:

• Purchase price: c.£5m
• CQC rating: Good (upgraded to Outstanding 6 months post-acquisition)
• Occupancy: 95%
• Structure: 75% LTV, 20-year term with 5-year initial interest-only period
• Completion: 12 weeks from heads of terms

Fox Davidson’s role involved presenting the management team’s credentials and business plans effectively to lenders, negotiating the interest-only period to support the transition, and securing a rate 0.4% below the initial offer through competitive tension between three interested lenders.

Case Study 2: £12m Portfolio Refinance – Midlands Group

A three-home portfolio in the Midlands sought refinancing to release equity for a 24-bed dementia wing extension planned for 2026. The group held one Outstanding and two Good CQC ratings with consistently strong occupancy across all sites.

Key details:

• Refinance amount: £12m
• CQC ratings: One Outstanding, two Good
• Purpose: Equity release for expansion
• Rate achieved: 5.2% all-in (interest-only for 10 years)
• Additional facility: £3m development tranche for new build

By presenting the group’s track record and detailed expansion business plans, Fox Davidson secured the combined refinance and development finance package from a single specialist lender, simplifying ongoing covenant reporting and relationship management.

Case Study 3: £3m Acquisition and Refurbishment – South West Operator

An established operator adding a second home in the South West required funding combining acquisition finance with a refurbishment tranche for essential equipment upgrades and compliance improvements.

Key details:

• Acquisition: £2.5m
• Refurbishment: £500k
• CQC rating (existing home): Good
• Structure: Senior term loan plus short-term refurbishment facility rolling into long-term on works completion
• Completion: 10 weeks

Fox Davidson structured the hybrid facility to allow phased drawdown of refurbishment funds, reducing interest costs during the works period. The refurbishment tranche converted automatically to term debt upon practical completion, avoiding refinancing costs.

Frequently Asked Questions on Large Care Home Mortgages

Securing large care home finance requires specialist expertise tailored to the unique challenges of the care sector. Fox Davidson offers established care home operators access to specialist lenders and bespoke funding solutions for acquisitions, refinancing, development, and portfolio expansion.

With a focus on loans from £2.5m to £25m+, we understand the importance of strong trading history, Good or Outstanding CQC ratings, and comprehensive financial documentation in achieving the best deal.

Our specialist care home finance broker service simplifies the complex lending landscape, providing expert guidance, whole market access, and tailored funding structures that align with your operational cashflows and growth ambitions.

By leveraging our deep sector expertise and established lender relationships, we help you navigate regulatory compliance, rising operational costs, and market competition to secure flexible terms and competitive rates.

Whether you are looking to purchase new care homes, refinance existing facilities, or fund development projects, partnering with Fox Davidson ensures you have a trusted partner dedicated to your success. Contact us today for expert assistance and a free, no-obligation finance assessment tailored to your care home finance needs.

📞 Call for immediate expert advice. 💻 Complete our enquiry form 📧 Email outline your requirements