Bridging Loans For Care Home Fees

Fund Your Care Home Fees

Find out how to fund your care fees with a bridging loan. Enquire now and get the best deal with ABC Finance.

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Gary Hemming

Author: Gary Hemming CeMAP CeFA CeRGI CSP

20+ years experience in bridging loans

When faced with a bill for care fees, it can leave both the person in need of care and their family in a difficult position.

In many cases, a bridging loan can be the perfect solution to alleviate the financial stress and secure the funding needed to secure a care home bed. Upfront costs can run up to £10,000, with ongoing fees often proving out of reach for those relying solely on pension income.

Let’s take a look at how a bridging loan can help.

What is a bridging loan?

A bridging loan is a short-term loan, which is secured against a property or land.

Bridging loans, also known as bridging finance are usually taken for a term of 1 to 12 months and usually come with no monthly repayments to make.

One of the key benefits of bridging is that these loans can be arranged very quickly, usually in as little as 2-3 weeks.

This makes them ideal when funds are needed quickly, such as when a bed becomes available in a care home, for which funds are required straight away.

Similar uses include bridging loans to downsize your house in retirement.

How can a bridging loan fund care home fees?

Bridging finance is a popular way of funding care fees, as they allow the borrower to raise funds quickly, and move without financial pressure. The borrower can then market and sell their home, without being burdened by monthly repayments. Once the property is sold, the loan is repaid in full – in the bridging loan world, this is known as your exit strategy.

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Are bridging loans safe?

When arranged correctly, bridging loans are perfectly safe. The key is to take a little extra time upfront to ensure that your exit strategy is realistic and can be achieved within the loan term.

When securing a loan against your own property, it will be FCA regulated, which means you’ll have a greater degree of protection. These are specifically known as regulated bridging loans and are distinct from unregulated bridging loans.

What are the key benefits of bridging finance for care home fees?

The key benefits are as follows:

  • They can be arranged quickly, meaning you can have the funds you need in just a few weeks.
  • You’ll have plenty of time to repay the loan, meaning one less thing to worry about at what is already a difficult time.
  • There are no monthly charges to pay, meaning you can wait to sell your property without having to face high monthly repayments.
  • Most loans have no exit fees, meaning you can repay at any time without penalty. You’ll even get back any interest that is unused when repaying early, even if it’s already been added to the loan.
  • Should you need additional funds to help meet lifestyle expenses, help your family or refurbish the property before selling, a bridging loan will allow you to do that.

Can a relative apply for me?

Yes, where power of attorney is in place, a relative can apply for a loan on your behalf. Our team of experts are well versed in these matters, so will be able to help without issue.

In cases where there is no power of attorney in place, we can still speak with relatives to ensure everything runs smoothly. In this situation, we regularly check in with the borrower to ensure they fully understand the loan and answer any questions they may have.

How much can I borrow?

We can arrange regulated bridging loans for £15,000, with no maximum loan size. Where needed we offer a specialist range of large bridging loans. No matter what your requirement is, we can usually help as we work with lenders across the market to make sure we find you the most suitable deal.

Want help finding your perfect solution?

Request a callback from our team of experts at a time convenient for you.