Care home finance: buying, refinancing and growing an operator
Care homes are valued as trading businesses and underwritten on CQC ratings, occupancy and fee mix, which is why generalist lenders step back. 25 of the 45 commercial mortgage lenders on our panel lend in the sector, from high-street banks to specialists who do little else.
We match the case to lenders comfortable with your rating, your occupancy and your plan, before anything is submitted anywhere.
The sector panel in numbers
25
of 45 commercial mortgage lenders lend on care homes
29
lend on healthcare premises more broadly
31
cover leisure premises, useful for mixed retirement operations
21
require no commercial landlord experience for investment deals
Counts are distinct lenders on our panel with at least one live product matching the criterion, checked September 2026. Panel composition changes over time, and meeting a criterion is not an offer: every case is subject to the lender's own checks.
What moves a care home deal
The CQC file
Rating, history and the last report's detail. Lenders read them. A Good rating opens the full panel; a turnaround story needs the subset who fund improvement plans.
Fee mix and occupancy
Private fees and high occupancy support stronger multiples; heavy local-authority dependence and voids pull the going-concern value down. The trading accounts carry the valuation.
Management
The registered manager is load-bearing, in the CQC's eyes and the lender's. Deals are structured around who runs the home the day after completion.
The building itself
Room sizes, en-suites, compliance works and extension potential all feed both the valuation and the plan lenders are asked to fund.
A note on who we take on
We currently work with UK limited companies and LLPs only, for business and commercial purposes. We complete non-regulated introductions and are not authorised by the Financial Conduct Authority.
The panel behind this page
Care home cases go to the 25 lenders on our commercial mortgage panel of 45 that lend in the sector, part of 200+ lenders across all products. That range matters more than any single rate: the lender that suits a five-year-old limited company with clean accounts is rarely the one that suits a seasonal business or a director with a past blip, and a broker with a shallow panel has to force your case into whichever box it holds.
Names you may recognise on the panel
Examples from our panel as at September 2026, not an endorsement of any lender and not the full list. We check criteria first and put your case only to lenders whose requirements you fit. The full panel by product is in our lender directory, and how we choose is set out on our how we work page.
Frequently asked questions
How many lenders fund care homes?▼
25 of the 45 commercial mortgage lenders on our panel lend against care homes, and 29 cover healthcare premises more broadly, out of 200+ lenders across all products. Figures checked September 2026; panel composition changes over time. It is a specialist sector, but a far bigger one than the two or three names most operators know.
What do lenders look at on a care home deal?▼
The business more than the building. Expect scrutiny of the CQC rating and history, occupancy levels, the fee mix between local-authority and private residents, staffing (particularly agency reliance) and EBITDA. The property valuation is usually done on a going-concern basis, meaning the home is valued as a trading business, so the same building can be worth very different amounts depending on how the operation is running.
Can I buy my first care home?▼
Lenders want to see relevant experience: a registered manager background, existing care-sector management, or a strong hired-in management team alongside you. First-time operators with a credible manager in place do get funded, typically at more conservative leverage. The CQC registration process runs alongside the purchase and lenders will want it mapped out.
Does a CQC rating of Requires Improvement block funding?▼
It narrows the field rather than closing it. Some lenders will not touch a home rated below Good; others will lend against a turnaround plan, particularly where the buyer has a track record of improving ratings. Pricing and leverage reflect the risk. An Inadequate rating is much harder, and usually means specialist or bridging money while the rating is recovered.
Can I refinance a care home I already own?▼
Yes, and it is a common route to release equity for upgrades, extensions or the next acquisition. The going-concern valuation cuts both ways here: a home trading better than when you bought it can support a materially larger loan on the same bricks.
Is care home lending FCA regulated?▼
Commercial lending to a company operating or acquiring a care home is generally unregulated business lending. CapExpand introduces limited companies and LLPs on a non-regulated basis and is not an FCA-authorised firm.
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We do not arrange regulated residential mortgages, consumer buy-to-let mortgages or any other regulated mortgage contracts. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
Tell us about the home
Beds, rating, occupancy and what you want to do. We come back with the lenders who fund homes like yours, usually within a day.