Care home and healthcare bridging loans
Bridging finance for care homes.
Care home bridging loans fund the purchase, refinance or improvement of care homes, nursing homes and other healthcare property in weeks rather than months: to buy a home that is underperforming and improve it, release money tied up in one you own, or bridge the gap until longer-term healthcare lending is in place. Few lenders take care homes, so below you can see who lends on them today and compare their products.
- Compare the bridging market
- We review your case and negotiate the best available terms
- Fast-track completion
Available products, lowest rate pm
- Regulated bridging
- 0.44%
- Loans above £1m
- 0.44%
- Commercial property
- 0.53%
- BoE Bank Rate
- 3.75%
- SONIA
- 3.74%
Recently completed
Bridging cases we've arranged.
Real cases our advisers have placed, from straightforward purchases to the ones other lenders turned down.
Care home bridging, explained
What lenders look for in a care home.
How a care home is valued
Care homes are valued as trading businesses, by a RICS surveyor who specialises in healthcare property, who looks at the number of beds, occupancy, the fees residents pay and the home's costs, as well as the building. Lenders also look at what the building would be worth if the home closed, which can be much lower, so the loan to value is usually lower than on other commercial property.
What the lender will ask about
- Its registration and latest inspection rating with the regulator: the Care Quality Commission in England, the Care Inspectorate in Scotland or Care Inspectorate Wales.
- Occupancy, and how many residents are funded by the local authority or the NHS rather than paying privately.
- Trading accounts, staffing costs, and how much the home relies on agency staff.
- Your experience of running care homes, or that of the operator you will use.
- The building's condition, and whether it meets current standards, for example on room sizes and en-suite bathrooms.
- How you will repay the loan: your exit.
How care home bridging loans are repaid
- Refinancing with a bank or specialist healthcare lender once the home's rating, occupancy or accounts have improved.
- Selling the home as a going concern.
- Converting the building to another use, such as homes, which needs planning permission.
Buying a care home with a poor rating
A home rated as requiring improvement, or inadequate, can often be bought for less, but lenders will want a clear plan for putting things right and the experience to deliver it. Bridging gives you time to improve the rating and occupancy before refinancing on better terms.
A worked example
You agree to buy a 30-bed care home for £1,500,000. It is rated as requiring improvement and is three-quarters full. The lender values it at £1,500,000 and lends 55% of that: £825,000 for 18 months, with the interest rolled up. You put in the rest, bring in an experienced manager, improve the rating and fill more beds, then refinance with a healthcare lender once the better figures show in the accounts.
These figures are only an illustration. The rate, fees and how much you can borrow depend on the lender and your circumstances.
Care homes and healthcare property on our panel today
- Lenders
- 42
- More on referral
- 1
- Rates from, per month
- 0.59%
- Maximum loan to value
- 80%
Live figures from the lenders on our panel, 1st charge. The rate you're offered depends on your loan, the property and your circumstances.
Compare care home bridging loans 020 7580 1555How it works
From first figure to funds released.
We're not tied to any lender, so every quote reflects the whole market, not whichever lender we know best.
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Compare the whole market
Bridging solutions from a wide range of lenders, private banks and specialist funds.
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Tailored rate sourcing
Our advisers review your case and negotiate the best terms available across the market.
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Fast-track completion
We manage the application so your offer and completion land exactly when you need them.
FAQs
Your questions, answered.
Can I get a bridging loan on a care home?
Yes, from a small number of specialist lenders. They usually lend at a lower loan to value than on other commercial property, and want to see that the home is, or will be, run by an experienced operator. The figures on this page show how many lenders on our panel lend on care homes today.
Will a lender lend on a care home with a poor inspection rating?
Some will, if there is a credible plan and an experienced operator to improve it. Expect a lower loan to value, and to be asked how and when the rating will be improved.
Do I need care home experience?
Lenders will almost always want to see experience of running care homes, either yours or that of the operator or manager you will use.
Can I release money from a care home I own with a bridging loan?
Yes. A refinance or capital raise can release money for improvements, an extension or another purchase, repaid when you refinance or sell.
What other healthcare property can I get a bridging loan on?
Lenders' healthcare criteria also cover nursing homes and other healthcare premises. Tell us what the property is and we'll check which lenders cover it.
About us
A whole-of-market bridging broker.
Bridging Eye is a trading style of Stirling Partners Finance Ltd. We're a bridging finance broker with access to the whole of the market — not tied to any single lender — so every quote reflects a genuinely broad set of options rather than a fixed shortlist.
We arrange both regulated bridging loans (where you or a family member will live in the security property) and unregulated bridging finance for investment, business, and commercial purposes. Because every lender we work with prices and underwrites differently, we compare across the market for your specific circumstances — loan size, property type, region, term, and exit strategy — rather than defaulting to whichever lender we know best.
Stirling Partners Finance Ltd is regulated and authorised by the Financial Conduct Authority (FRN: 304236). See the footer below for our full regulatory and company details.
Authorised & regulated by the FCA · FRN 304236Talk to a broker
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