Nursing Home Mortgages

Nursing Home mortgages are loans to be used for the purchase of an existing or proposed Nursing Home.

There are difference commercial mortgage solutions to meet the various requirements of the healthcare sector.

The three most common forms of finance solution for this market are:

Lending Conditions

In the first quarter of 2008 we are finding that the choice of lenders has diminshed with the credit crunch taking its toll, particularly on the specialist lender community.

The good news is that there is still a sub-set of commercial mortgage and commercial development lenders specifically interested in financing healthcare related development projects, or nursing home purchases .

Where money is available for projects and purchases, lender's have tightened up their qualifying criteria and generally offering funding for the less risky projects.

How Can A Broker help?

A commercial mortgage broker is positioned to help determine the best lending source for your business based on your unique situation.

By contacting only those lenderes with an interest in the specific industry sector, the Broker can prevent multiple stamps accruing on the applicants credit file, which is considered to be negative by the lender community

TAL Commercial select only appropriate lenders, and in all cases, those most willing to lend on healthcare related projects/businesses.

Having a large volume of credit stamps on a credit file is often perceived negatively by lenders. This can result in loan offers being charged at higher interest rates, or in applications being rejected altogether.

Options are also available for commercial mortgages on leasehold premises, although the length of the lease (years) at the end of the period of the loan, is often a major determining factor in whether a mortgage offer will be forthcoming.

Mortgage Options

Self-Cert (non-status) Mortgages - Temporarily Suspended!

Mortgage Criteria

Budgetary Self-Cert Mortgage Rates:

Around 2% above base with accounts, true self-cert more like 4% over base with reasonable credit history, and 6% over base if you have CCJ’s or a satisfied Bankruptcy on your credit file.

Status-Based Mortgage Options

The lending criteria for status-based commercial mortgages is almost always more rigid than self-cert products, although there is some level of flexibility for larger purchases (chains etc), or where the applicant has a strong track record in a retail car sales business.

Mortgage Criteria

Additional options exist to build structured finance for refurbishment projects, or special situations.

Budgetary Status-Based Mortgage Rates

Rates amongst the Banks vary for nursing home mortgages, but start at around 1%-1.5% over Bank of England Base Rate, and scale up to around 6% over Base depending on the perceived risk of the venture.

For Help Securing Your
Nursing Home Mortgages

Call TAL Commercial Today

0845 643 0260