Care Home Mortgage Rates (UK)
Current market ranges, deposit expectations, and common fee patterns for care home mortgages in one place.
Indicative figures only - lender pricing changes frequently and depends on case complexity.
Rate Overview
Typical market range for care home mortgage pricing.
Typical rate range
5.5% - 7.5%
4.5% - 8.5%
Typical deposit
35% - 40%
Min 30%
Typical timeline
6-12 weeks
Application to completion
Rates are indicative, not a quote. Final pricing depends on lender criteria, LTV, rental profile, and borrower background.
What Moves Your Rate Up or Down
These are the strongest factors lenders weigh when setting pricing.
- Specialist lenders with care home expertise
- Regulatory compliance requirements
- Higher deposit requirements due to risk
- Professional operational support
- Flexible terms for established operators
Fee Breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Commercial facility fee
1% - 2%
of loan amount
Valuation Fee
Commercial property valuation
£1,500 - £5,000
specialist surveyor
Legal Fees
Commercial conveyancing
£2,000 - £5,000
plus due diligence
Broker Fee
Commercial arrangement
0.5% - 1.5%
on completion
Rate FAQs
Quick answers to common pricing questions.
Do I need CQC registration before applying for finance?+
Most lenders require CQC registration or evidence of registration in progress. You'll need to demonstrate compliance with care standards and have appropriate operational procedures in place.
What experience do I need to operate a care home?+
Most lenders prefer borrowers with previous care home operational experience, though some may consider applications from those with relevant healthcare backgrounds and strong management teams.
Are care home mortgage rates higher than standard rates?+
Yes, care home mortgage rates are typically 2-3% higher than standard rates due to the increased risk and regulatory complexity. Rates may vary based on your experience and the property's compliance record.
Can I get care home finance for a new build property?+
Yes, though new build care homes may require higher deposits and more detailed planning. You'll need to demonstrate that the property meets all regulatory requirements and has appropriate facilities for care provision.
Can I get care home finance for a mixed-use property?+
Some lenders will consider mixed-use properties with care home elements, though the criteria may be more complex. You'll need to demonstrate that the care home portion meets all requirements and generates sufficient income.
How is care home income assessed for mortgage applications?+
Lenders typically assess income based on occupancy rates, fee levels, and operational costs. They'll want to see evidence of stable occupancy and realistic fee projections based on local market conditions.