Mortgages and loans for care home businesses
"Handling your business finance needs with care"
Government funding to the healthcare sector is improving and more and more private individuals are considering asset-backed investment opportunities within the care home sector.
With the market predicting that the number of people over the age of 60 will increase by 37% by 2031, the demand for residential or nursing care can only increase. As lenders begin to recognise this trend, funding in the healthcare sector is becoming more flexible.
Main Features
The terms of a commercial loan against a care home vary considerably from lender to lender but as a general rule, the following will apply:
- 70-75% loan to property value ratio
- 15-30 year mortgage term
We are experienced in offering financial solutions for purchases, remortgages, debt consolidation, capital raising (extensions) and cash injections across the healthcare sector.
Factors Affecting Your Loan Application
There are a number of factors which can help to make your application more attractive to a lender:
- A deposit of 30% or more
- Additional security
- Business plan
- Proof of experience
- Good credit history
- Two years' trading accounts or strong income projections
- Strong proposal from Christie Finance
When assessing a care home mortgage application, any lender will also have to take into account the following:
- Good trading location
- The number of beds and the ratio of singles
- Good access via passenger lifts
- En-suite facilities in each room
- Minimum standards enforced by the Care Standards Act 2000 and assessment by the Commission for Social Care Inspection (CSCI)
- The experience of the home manager – typically they will require NVQ level 4 in Management and Care and at least two years' experience in a similar role in the last five years
Go to 'Our Offices' to find your local business mortgage representative now.
Christie Finance – The intelligent choice
