Bridging Loan for Care Home
Moving into a care home can be a stressful and disruptive time, especially if you need to make the move unexpectedly and do not have all of the necessary financial arrangements taken care of. A bridging loan can help smooth the transition and means you don’t end up unable to pay your care home fees in the short term.
Why use a bridging loan to pay care home fees?
If you move into a care home on a permanent basis, it is normal to have a financial assessment to see if the council will help pay your fees. If you have less than £23,250 in savings the council will not include the value of your home in your financial assessment for the first 12 weeks.
This “financial disregard” period is intended to give you time to decide whether you wish to sell your home and to prepare it for sale if necessary. During this period the council will pay your fees. However, after the initial 12 week period, you will be expected to pay your own fees.
If you do not have the cash available to do so and have not been able to sell your home, then a bridging loan can give you more time to make a sale, sort through your possessions and secure a better price by avoiding the need to make a quick sale.
How much does a bridging loan for care home fees costs?
The cost of bridging finance varies between lenders, but the main costs are:
- Arrangement fees (usually 1-2% of the property’s value – paid when you take out the loan)
- Exit fees (also usually 1-2% of the property’s value – paid when you repay the loan – not all lenders charge exit fees)
- Interest (normally charged monthly or as a lump sum when the capital is repaid)
Find the best interest rates on a bridging loan for care home fees
Our free bridging loan calculator makes it easy and quick to find the best interest rates and fees on bridging finance. This means you can get the best deal available from across the market with the minimum of hassle. Try it now to see what sort of deal you could get on a bridging loan to pay your care home fees.
Looking for a bridging loan for care home fees? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058.