Carehome Mortgages

We specialise in arranging commercial mortgages for the care sector, supporting operators with funding to acquire, refinance, or upgrade care home facilities. A commercial mortgage for a care home is a critical tool for businesses looking to expand capacity, improve facilities, or strengthen long-term operational stability, with loan terms available of up to 30 years.

Because care homes serve vulnerable residents, commercial mortgage lenders apply enhanced scrutiny to both the property and the operation. Lenders place significant emphasis on regulatory compliance and management quality, and borrowers are typically required to provide CQC or CIW inspection reports as part of the underwriting process. These reports help lenders assess operational risk, continuity of care, and reputational exposure in the event of enforcement or receivership.

Operator experience is also a key consideration. Experienced care providers with a proven track record, strong occupancy levels, and compliant management structures are far more likely to access competitive tier-one lending terms.

Interest Rates and Loan-to-Value (LTV)

Interest rates on a commercial mortgage for a care home are higher than residential lending, reflecting the specialist and operational nature of the asset. Most lenders will require a personal guarantee, supported by a strong credit profile and meaningful equity contribution.

Underwriting typically involves a detailed review of:

• Trading accounts and cash flow sustainability
• Business plans and occupancy assumptions
• Staffing structure and cost controls
• Regulatory history and inspection outcomes

A commercial valuation is required, usually based on a going-concern (MV1) methodology, with loan-to-value ratios commonly available up to 80%, subject to trading strength, compliance, and operator experience.

As a whole-of-market commercial mortgage broker, we provide independent advice and access to lenders with specialist appetite for care home mortgages, ensuring funding is structured to support both operational resilience and long-term growth.