The care home finance market changes over time. Lender appetite, pricing, loan-to-value requirements and available repayment terms can all evolve.

If your existing borrowing was arranged several years ago, it may therefore be worth reviewing whether it remains appropriate for your business and whether alternative funding options are available.

What could a funding review identify?

Depending on your circumstances, reviewing your existing borrowing may identify opportunities to:

• reduce borrowing costs where more competitive terms are available;
• release equity to support refurbishment, acquisitions or other business investment; or
• improve cash flow by restructuring repayments or consolidating existing borrowing.

Refinancing will not be appropriate in every case. Existing early repayment charges, valuation and legal costs, arrangement or broker fees and the terms of any replacement borrowing all need to be considered. Extending the repayment period may reduce monthly repayments but could increase the total amount of interest paid over the life of the loan.

Recent care home funding arranged by Chandler & Co

Examples of funding we have arranged for care home operators include:

• 1.65% above Bank of England Base Rate – refinancing for an existing operator across two care homes;
• 1.40% above Bank of England Base Rate at 70% Loan to Value – funding for an existing operator purchasing their second care home; and
• 30-year repayment term with no lender arrangement fee – funding for an existing operator purchasing an additional care home.

Each example relates to a separate transaction, so the features shown were not available together. They are historic examples based on the individual circumstances of those borrowers and do not indicate that the same or similar terms are currently available.

The rate payable on variable-rate borrowing can increase as well as decrease. Finance is subject to lender criteria, status, credit assessment, affordability/cash flow, valuation, security and individual circumstances. Valuation, legal, broker, arrangement and other fees may apply. Existing borrowing may also be subject to early repayment charges.

Is it worth reviewing your current funding?

A review does not necessarily mean changing lender or refinancing immediately. It can simply help you understand how your existing arrangements compare with the funding options currently available to your business.

Chandler & Co has worked with care home businesses since 1995. We specialise in care home finance and work with a range of lenders across the sector rather than being tied to one particular lender.

Using our knowledge of the care sector and lender requirements, we can explore available funding options and negotiate with lenders based on the circumstances of each transaction.

Whether you are considering refinancing, planning your next acquisition or simply want to understand what options may be available, contact the Chandler & Co team HERE to discuss your requirements.