After seeing record levels of demand, Allica Bank is further strengthening its care home commercial mortgage proposition to cover specialist care for adult and children’s learning disability services, as well as supported living services.
For its elderly care policy, the bank has reduced its debt service thresholds for both first-time buyers and experienced operators. In addition, it now includes the ability for operators to take a capital repayment holiday for up to 24 months.
The move follows the increase of the bank’s maximum commercial mortgage loan size from £5 million to £10 million, which covers both single loans and the combined value of multiple loans to the same customer. It can also provide full term mortgage commitments, meaning the care home operator will not need to refinance during the term.
Tom Procter, Specialist Relationship Manager for the care home sector at Allica Bank, says he is proud the bank is offering dedicated, tailored support to an underserved sector:
“The enhancements have been developed using a combination of our team’s specialist care home sector knowledge and extensive feedback from our broker partners. We have heard a lot from our broker community that they are seeing increasing demand from both new entrants and experienced operators looking to invest in these dynamic markets.
“In addition to covering a wide range of care needs and ages, long-term security is also vital and our ability to provide full-term commitments, as well as fixed-rate mortgages, addresses those needs,” he says.
“Overall, we believe this further evidences Allica’s commitment to the wider care sector, for which we have seen unprecedented demand. These changes will help to support operators in their growth and investment plans and empower them to provide the best quality care.”