70%
Typical max LTV, trading home
Tool
Care home mortgage calculator
An indicative read on what a care home purchase or refinance could support: loan size at typical leverage, the deposit required and the monthly repayments. For operators, buyers and investors; nothing is saved.
£61,000/bed
Avg value per bed (LaingBuisson)
4.5%
Prime yield (Knight Frank)
88.7%
Sector occupancy (Knight Frank)
£0indicative maximum loan
£0deposit / equity required
£0monthly repayment
Indicative only, based on typical leverage for the setting (up to 70% of going-concern value for a trading home, up to 60% for a vacant home) and the rate and term you entered. Actual terms depend on the operator covenant, CQC rating, occupancy, fee mix and lender appetite, and are not an offer of finance.
How lenders size a care home mortgage
A trading care home is valued as a business, on its earnings, not just its bricks. Lenders apply a multiple to adjusted profit (EBITDARM) or take the going-concern valuation from a specialist healthcare valuer, then lend a proportion of it. The stronger the operator covenant, the CQC rating and the occupancy track record, the closer the leverage gets to the top of the range and the keener the pricing. Our guides explain how a care home is valued, the deposit you need and rates and costs in detail.
Buying rather than refinancing? Start with how to buy a care home, then browse registered care homes by area or by operator to read the market you are buying into.
FAQ
Care home mortgages: common questions
How much can I borrow on a care home mortgage?
Specialist lenders typically advance up to around 70% of the going-concern value of a trading care home, and less, often up to around 60%, against a vacant or non-trading home valued on bricks and mortar. The achievable figure turns on the operator covenant, CQC rating, occupancy, fee mix and EBITDARM, which is why two homes with the same price can support different loans.
What deposit do I need to buy a care home?
Plan for around 30% of the purchase price for a trading home, and more for a vacant home, a first operation or a turnaround. Lenders also expect costs and working capital on top. Our guide to the deposit needed to buy a care home covers the detail and the ways experienced operators reduce the cash requirement.
What are care home mortgage rates?
Care home finance is priced case by case rather than from a rate card. As a working range, strong trading homes with experienced operators price at a margin over base or SONIA, with bridging and development money costing more. The rate reflects the operator, the home's trading record, the CQC position and leverage. Send us the deal and we will give you a realistic range within one working day.
Is a care home mortgage regulated by the FCA?
Lending to operators, companies and experienced commercial borrowers for a care home business is unregulated commercial lending. A case that would touch the FCA regulated mortgage perimeter, for example an owner-occupier living at the property, is referred to an authorised firm. This calculator is indicative information only, not an offer of finance or advice.
Want real terms, not a calculator?
Send us the home and the operator and we will come back with a view on fundability and likely terms within one working day.