Mortgage guide
Carehome Mortgages
Because care homes serve vulnerable residents, commercial mortgage lenders apply enhanced scrutiny to both the property and the operation.
- Published
- 4 Aug 2026
- Last reviewed
- 4 Aug 2026
- Reading time
- 3 min
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.
Commercial mortgage calculator
Choose owner occupier for a business buying or refinancing premises it trades from, assessed on adjusted net profit before tax from the latest accounts, or investment for property let to tenants, assessed on lease income.
Commercial mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max Loan to Value (LTV) | 80% LTV Care Home Mortgages, 100% LTV Medical Commercial Mortgages, 75% Commercial Investment |
| Max Term | Up to 40 years |
| Completions | From 4 weeks |
| Repayment options | Capital repayment and Interest only |
| Commercial mortgage rates | From 6.19% |
| Rate options | Variable, Base Rate Tracker, 2, 3 or 5 year fixed mortgage options |
| Valuation methods | Going concern/Investment (Market value 1, MV1), MV2, MV3 or bricks and mortar |
| Flexible Leases | Rolling leases, weak covenants and short time remaining accepted |
| Adverse credit | Accepted on some products on a case by case basis |
| Locations | Available in England, Scotland, Wales and Northern Ireland |
| Experience | Not required on certain products |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Max Loan to Value (LTV) | 65% |
| Product fee | 5% (4.74% for existing customers) |
| Fixed rate (5 years) | 6.34% |
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Frequently asked questions
Can you get a 90% commercial mortgage?
Yes, 90% loan-to-value commercial mortgages are possible, but only in limited sectors such as healthcare properties, pharmacies, or certain convenience stores with strong trading history. For most other commercial properties, maximum lending is typically capped at around 70% to 75% LTV.
What documents do I need to apply for a mortgage with Mortgage Lane?
You will usually need proof of identity, proof of income, bank statements and details of the property you are buying or investing in. The exact requirements depend on the mortgage product and your circumstances.
How long does it take to obtain a mortgage offer?
It depends on the lender, and each mortgage case is different. Digital mortgages can produce an offer quickly where the lender's automated checks are satisfied, while traditional lenders usually take longer. Cases that need more underwriting can take longer.
Do mortgage brokers charge fees?
Some mortgage brokers charge fees, while others do not charge the borrower directly. A broker may be paid by the customer, by the lender through a procuration fee, or by both. UK mortgage brokers must clearly disclose their fees and payment arrangements before the borrower proceeds.
Talk it through with an adviser
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
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- Call our team
- +44 333 231 8206
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- +44 7487 829005
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