Can you get finance for a care home or children's home?
Yes. Specialist commercial lenders fund care homes and children's homes across the UK, but this is one of the most specialist areas of the market. These are regulated, trade-related assets: the value depends on how well the home operates, its occupancy, its fees and — crucially — its rating from the regulator. A commercial mortgage here is very achievable for a well-run, well-rated home, but it must go to a lender that understands the sector.
Getting the wrong lender wastes weeks. Getting the right one, with genuine appetite for care and social-care assets, is the difference between a completed deal and a dead one.
How much deposit do you need?
Deposits reflect the specialist, regulated nature of the asset:
- Established, well-rated homes with strong occupancy: around 30% to 35%.
- New operators or homes needing improvement: often 40% or more.
- Turnaround or distressed homes: may need bridging first, then a term mortgage once stabilised.
How do lenders value care and children's homes?
Like other trading assets, these are usually valued on a going-concern basis rather than bricks and mortar alone. The valuer assesses the fair maintainable trade — sustainable occupancy and fee income — and derives a value. Factors that drive the figure include:
- Occupancy levels and fee rates.
- The mix of privately funded versus local-authority-funded residents or placements.
- The number of registered beds or places.
- The regulatory rating and compliance history.
- Staffing, condition and location.
Why regulation matters so much
The regulator's rating is central to lender appetite. In England, care homes are inspected by the Care Quality Commission, and children's homes by Ofsted; other UK nations have equivalent regulators. A strong rating signals a well-run, compliant operation, which reduces lender risk and improves terms. A poor rating, or a home in special measures, narrows the lender pool sharply and increases the deposit and rate.
What do lenders want to see?
Expect to provide:
- Two to three years of trading accounts and current management figures.
- Occupancy data and the funding mix of residents or placements.
- The latest regulatory inspection report and rating.
- Registration details and the number of beds or places.
- Your experience operating in the sector — track record matters greatly here.
How do you fund a care asset efficiently?
Given how specialist this sector is, matching to a lender with genuine care-sector appetite is essential. Assesr builds a lender-ready credit paper from your figures in around 60 seconds and matches it to specialist commercial lenders that fund care homes and children's homes. You pay a 0.5% Assesr Fee on drawdown — a quarter of the typical broker fee — with nothing until completion.
For a home that needs improvement before it can prove sustainable trade, a short-term bridge to stabilise operations, followed by a term mortgage, is often the right route.
Frequently asked questions
Can I get a mortgage on a care home or children's home?
Yes, through specialist commercial lenders that understand the sector. They assess the property, the trading performance, occupancy levels and the regulatory rating from the Care Quality Commission or Ofsted. Getting matched to a genuinely care-focused lender is critical.
How much deposit do I need for a care home?
Usually 30% to 40% of the value or price. Established, well-rated homes with strong occupancy can achieve the lower end, while new operators or turnaround situations need more, and may need bridging first.
Does the regulatory rating affect my finance?
Yes, significantly. A strong Care Quality Commission rating in England, or the equivalent regulator elsewhere in the UK, and a good Ofsted rating for children's homes, materially improve lender appetite and terms. A poor rating narrows the lender pool and raises costs.