Care Home Mortgages: Building a New Care Home From the Ground Up

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Funding options


Designed For Your Business

  • Payments geared to your turnover
  • Adverse Credit – no problem
  • No Income Proof Required
  • Repayment and interest-only available

Finance For Property

  • Terms up to 20 years
  • £50,000 – No Maximum
  • Rates from 2% over base rate
  • Up to 80% Loan to Value available


  • Answers for all types of challenges
  • Solutions tailored to your needs
  • Arrangements tailored to your circumstances
  • Assets, cashflow, growth capital

Talk to Rangewell - the business finance experts

Running a care home demands dedication and funding. At Rangewell, we know every lender in the market and can help you find the funding you need.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

Increasing life expectancy means that there is an ageing population - and booming business for the care home industry with demand exceeding supply

Running a care home can be an extremely rewarding business, worth around £16billion each year. According to the Office for National Statistics (ONS), demand is going to increase. It means plenty of opportunity for setting up a care home.

But of course, running a care home is not simply a business. Looking after people at the end of their lives is a huge responsibility and requires compassion, a professional caring approach and a genuine desire to enhance the lives of your residents. 

What’s more, care home providers must demonstrate compliance with extensive and rigorous regulations to register and operate their care business.

In England, it is the Care Quality Commission (CQC) which acts as the independent regulator to the sector and to ensure minimum quality and safety standards are met.

The CQC has detailed regulations for care home owners, including the need to employ suitably qualified and competent staff and the need for the premises to meet stringent health and safety standards, as well as requirements for the safeguarding and treatment of residents. It inspects care homes at regular intervals and care homes may be put into special measures, or even struck off the register if they fail to meet the necessary care standards.

If you are wanting to buy or set up a care home, you will need to make an application to register with CQC as the ‘care provider’. You may also need to appoint a registered care home manager who will take everyday responsibility.

Meeting standards is essential and makes good business sense. The best solution to build a profitable business is to provide a high standard of care - which will help ensure full occupancy and hence maximise profits.

At Rangewell, we work with all kinds of care homes across the UK and all types of finance for elderly care homes, children's care homes, vulnerable adult care and more. It means we know the challenges you face at all stages of setting up and running your home - and we know the financial solutions to them too.

Your care home funding needs

As a care home operator, you may need to find the right type of funding to help you when you are ready to:

  • Set up a new care home
  • Buy an existing care home
  • Acquire equipment and assets
  • Provide working capital
  • Support your cashflow 
  • Finance growth 
  • Deal with tax
  • Deal with problems

Setting up a new care home

Starting a care home business may well be an expensive venture. Unless you already have suitable property - a very large residential house or hotel premises - your primary consideration is going to be finding a suitable building.

The location can be crucial. While many residents might want a picturesque location, there are also practical considerations. Many relatives of residents will be elderly themselves and need to use public transport or to travel only a short distance to visit. So a town might be best, rather than a country location with marvellous views. It is also essential to choose a location where you can find staff. You will need to employ unskilled people, who will not want to travel too far to work as it will not be economic for them to do so.

Size is also important. For a care home to prove profitable you will need to ensure you can provide care for a minimum of 25 residents.

Buying premises with a Commercial Mortgage could give your business and residents security, and help you secure a valuable asset for the future.

Commercial Mortgages can help you spread the cost of acquiring a suitable property over 20 years or more. Setting up a care home may involve many other expenses, but with property being looked on positively by most lenders, it may be relatively easy to secure the mortgage you need - although as a new business you should still expect to provide a detailed business plan which will show how your business can generate sufficient profits to repay the loan.

Remember, you will need change-of-use planning permission from the local authority to turn a private residence into a care home.

At Rangewell we can help you with the application and find the lenders who are most likely to be receptive to your business plans.

Buying an existing care home

Setting up your own care home may be possible, but an alternative is to buy an existing home.

This has an important advantage in that it will come ready to work and with residents who will generate revenue from day one, providing a shortcut into profits. The costs involved may depend on the current turnover of the home and its potential for the future.

You may also find that it reduces the cost of borrowing - lenders are usually happier lending to an established business that can demonstrate viability with positive accounts over previous years. We can help you secure a number of solutions to let you buy into an established care home.  

Funding equipment for your care home

Your care home will have a wide range of equipment needs. Some residents may bring their own furniture if your service is purely residential but, if you provide nursing care, you will be faced with a long list of medical equipment, from beds and wheelchairs to hoists, to provide medical beds, wheelchairs and lifting equipment. Other items may be needed according to the severity of the impairments that your residents exhibit.

You will need to fit out a kitchen capable of producing large numbers of meals, as well as business items such as a computer and printer.

Asset Finance lets you spread the cost of the equipment - or assets - you need. There are several types of Asset Finance.

Hire Purchase allows you to hire assets until you have paid for them, at which point they become yours. It can spread the cost of items such as seating and tables that you expect to give long service for the long term. HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments. A medical bed might be a good purchase using Hire Purchase

Leasing operates like a rental agreement. You pay a monthly charge to use the asset. It’s common for things such as large screens and refrigeration equipment which will have a limited life – it means you can easily update your equipment when you need to because of a change in plans or a better solution coming on the market. You might choose to lease your IT equipment, which can provide the extra peace of mind that comes from knowing if something goes wrong, the lease company can be responsible for dealing with it.

Find out more about the Asset Funding solutions for your care home.

Cashflow Finance for care homes

Cashflow is a challenge for any business. If you are faced with a large number of big costs simultaneously, you could find that your cashflow has become negative - and that you need external funding to keep your care home open.

Cashflow support and Working Capital Finance can provide cash to deal with large costs and overheads, and keep your cashflow positive. It is usually designed to be repaid in the short- to medium-term, once the problem has been dealt with. Find out more about Cashflow Finance for care homes.

Growth Finance for care homes

You will probably want to grow your care home operation to maximise the income it can offer and enjoy economies of scale. Large-scale finance can help you build an extension to provide more rooms, acquire a neighbouring building to use as an annexe, or even acquiring a competitor. 

Growth Finance is designed to help, with loans designed to provide the cash to fund growth that can be repaid once that growth is making returns.

Lenders may need you to show an established trading history and record of profits, but it may still be possible to arrange Growth Finance based on your profit projections. Find out more about Growth Finance for care homes.

Insurance for Professional Indemnity

Your professional indemnity insurance may be a major cost, particularly if you provide medical, as well as residential, services. There are a number of ways to provide for the cost of the cover you need. Find out more about solutions for professional indemnity.

Tax Loans for care homes

A large quarterly VAT or annual tax demand can cause serious problems for your business' cashflow, especially when it falls at the same time as other costs. Tax Loans help you spread the cost of your tax demands into affordable monthly payments. They mean that your care home business can have:

  • Better control of cash flow
  • Fixed monthly payments
  • Quick and simple to arrange

It can also ensure that you avoid late payment issues with HMRC, with the potential penalties and reputational damage that can follow. See how a Tax Loan can mean better control of cashflow for care homes.

Dealing with problems

Even the best-run business can run into financial difficulties. At Rangewell, we know the solutions which can help your care home business deal with challenges. We can even provide financial solutions if you have a damaged credit history or CCjs, which are considered red flags by most lenders.

Find out more about finance for care homes facing financial difficulties.

How we can help you capitalise your care home

Your care home may present a number of funding needs. At Rangewell, we aim to provide an individual approach and the solutions you need. We use our expertise to find the most competitive deal for all types of finance, including Professional Loans, Unsecured and Secured Loans. As well as the more conventional loan products, we can also help you find newer Alternative Funding products, using new loan providers and innovative funding solutions.

Whether your care home plans need a simple quick solution, or a more complicated ‘Jigsaw’ Funding plan made up of a combination of products for the long-term, we can work with you to find the answers.

Call us now to get our care home funding experts working for you for any type of Care Home Finance you need. You can also find additional business support for care homes with our Care Home Directory.

Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • Lending tailored to your plans
    At Rangewell we can help you find the most appropriate finance for any funding need your care home business presents.
  • Work with experts who understand your finance needs
    At Rangewell, our team includes experts in both medical and property finance.
  • Providing solutions for equipment
    Whether your care home needs medical equipment, IT or a vehicle, we can provide the funding you need.
  • Reducing risk
    Some funding can present a risk to your business - we can minimise risk - with solutions like Asset Funding, secured purely by the assets you are financing.
  • Long-term funding
    Your care home will have long term funding needs. Rangewell can work with you to deliver them.
  • Specialist lenders
    Some Asset Funding providers specialise in particular sectors. At Rangewell, we can help you find the most appropriate lenders for the care home sector.

Download Rangewell’s free and detailed guide to Finance for your Care Home

What types of finance are available to Care Homes and business providing residential care?

What is Asset Finance - and how it gives you a business advantage

 Can finance help me increase the number of care home places my property offers?

Why not all providers are equal - finding the one that’s right for you

How we can help you pay less than 0%

The  downsides to finance - and how to avoid them

How to arrange finance - What paperwork do you need?

 What type of information will I need to provide with an application (eg, company numbers, registered office details, VAT numbers, accounts)?

Are all lenders authorised and regulated by the Financial Conduct Authority?

How do I go about arranging Care Home finance?

Key terms explained

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Getting the right funding arrangement is essentialThere are many forms of business finance available. Getting the most appropriate type for your particular needs is essential to avoid excessive costs.
Your key equipment could be at riskIf you are unable to keep up repayments on a hire purchase or lease agreement, the equipment your practice depends on could be could be at risk.
Long-term financial commitmentsYou may not be able to pull out of a finance arrangement once set up. This could present a problem if you change your business plans.

Our service is:


Transparent and independent, treating all lenders equally, finding the best deals.


Every type of finance for every type of business from the entire market - over 300 lenders.


Specialist Finance Experts support you every step of the way.


We make no charge of any kind when we help you find the loan you need.