Fox Davidson are an award winning broker of commercial mortgages for care homes. We secure finance to clients financing all types of care homes, including residential care homes with or without nursing, specialist learning disability care homes and care homes for dementia.

We have well established relationships with the key decision makers at commercial lenders specialising in commercial mortgages for care homes. Our commercial mortgage brokers understand the care home industry and the regulations that care home owners must adhere to.

The care home finance that we secure will be selected from the whole of the market giving you the best possible terms. Our independence means that we are not tied to any lenders and we do not work from a panel. We work with high street commercial banks, building societies, private banks and broker only lenders to ensure clients requiring care home finance get the best possible terms.

The lending we put in place also goes beyond just the finance. We will ensure that you are partnered with a lender that specialises in the care sector. Your lending partner will have an in-depth knowledge of the sector and will work with you to ensure you have the funding you require to acquire the business now and in the future.

How to get a commercial mortgage on a care home

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When underwriting a lending application for a care home a lender will assess the existing business and also the applicants/directors/shareholders. The accounts of the business are crucial in determining the loan amount available and will also show if the business is steadily increasing turnover and profit or facing issues. We will request 2 to 3 years accounts for the business and will assess the accounts ourselves to ensure we place the lending application with the right lender, first time.

The business will also have to produce the latest 2 CQC reports and these will need show that there are no issues.

All directors and major shareholders of the business will also be underwritten. The will be looking to see that net asset position and that bank accounts for the business and your own personal accounts are ran well.

The team at Fox Davidson have been securing commercial mortgages for care homes for over 30 years combined and we have excellent relationships with lenders. We will collate all of the information on you and the business plus the supporting documents, we will then organise and present it in the right way to the right lender, first time.

We work hard for our clients to secure market leading commercial finance terms and will manage the whole process from enquiry through to completion.

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What are the typical terms for care home finance?

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  • Up to 80% loan to value – Finance terms will improve the lower the loan to value.
  • Repayment and Interest Only Options.
  • Rates starting from around 2% above Bank of England Base Rate
  • Loans from £250,000 with no upward limit
  • Typical term of repayment up to 25 years
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Existing care home owners

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If you are an existing care home owner looking to refinance or expand then your Care Quality Commission rating will be an important factor as will the profitability of your business, your assets and your liabilities.

With rates for care home finance at all-time lows due to a record low Bank of England base rate since 2016 but steadily increasing, now is an ideal time to review your care home finance.

Fox Davidson will carry out a free review of your existing care home finance and provide you will full refinance terms for your consideration.

Speak to us about commercial mortgages for care homes by calling one of our commercial mortgage brokers today or send us an email.

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How do commercial mortgage lenders view the care home sector?

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The care home sector can find itself in the public eye when those operating at low standards are highlighted in the press. For this reason alone, some lenders shy away from lending in this market.

When sourcing commercial mortgages for care homes we use our expertise to partner you with a lender that knows the sector and with one that is active in lending in the market both now and in the future.

A report in 2017 found that in 2018 almost 3,000 care patients will not be able to find a bed. The research, carried out by property consultants JLL, found that since 2002 an average of 7,000 new care home beds had opened in the UK every year, but by 2026 there would be an additional 14,000 people needing residential care home places per year.

The care home sector is without a doubt in demand and the banks we work with are keen to help private individuals to purchase new care homes, refinance and upgrade existing care homes and to finance the building of new care homes from the ground up. Fox Davidson and its lending partners can fund each of these scenarios.

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