Care Home — pricing factors (UK)
What lenders weigh when pricing care home cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a care home case is accepted and how it is priced. They are not a quote.
- Care home operational experience
- CQC registration and compliance
- Strong financial position and track record
- Professional team and management structure
- Adequate working capital and reserves
- Suitable property for care home use
For indicative numbers, use our mortgage calculators and compare brokers who specialise in care home.
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.