Care home 'move in' loans

Moving into a care home can be expensive, our free tool shows if you may be eligible for finance.

Moving into a care home can cost upwards of £10,000 in the first month and often over £4,000 a month thereafter, this can easily mean an outlay of £30,000 in the first six months.

Move in (bridging) loans are one way in which funding can be organised quickly, usually within 7 days, to enable a care home placement; they are particularly useful if you are waiting to sell a property to fund ongoing care costs and do not have sufficient money in the bank.

Finance Example

Mrs Jones aged 85 years old can no longer manage to live in her property; she has decided that it is now time to move to a care home near her daughter.

The family have found a lovely local home which costs £950 per week, the home requires a one month deposit plus the first months fees paid in advance totalling £7,600.

Mrs Jones has enough money to pay for the first month but will not have sufficient funds to pay for the care home thereafter, but she does have a property worth £350,000.

Her family spoke with a TrustedCare funding specialist who determined that a move in loan would be available to assist them. Following the advice of the funding specialist they placed Mrs Jones property on the market, they also sought legal advice and a power of attorney was put in place.

Using the bridging loan an agreed amount of £30,000 was raised against the property so Mrs Jones could pay for her care home fees and move in without delay.

The property sold 7 months later and the move in loan was repaid using some of the sale proceeds.

Example loan cost

  • The interest rate of the loan was 1.89% per month, with the interest rolling up
  • The product arrangement fee was £1,895 paid on completion
  • Property valuation fee £125 paid on application

Arrangement & valuation fees: £2,020.00

7 months interest: £2,260.96

Total cost to borrow the funds for 7 months = £4,280.96

Our free tool below will help you establish if you would be eligible for this type of finance.

Please answer the following questions
Who is the care for?
In what part of the UK do they live?
Does the person who needs care own their own home?
Is the home jointly owned by a spouse or a close family member?
Does the person who needs care have any other asset of value e.g. classic cars, jewellery, art works or antiques?
Does the property have any outstanding charges (mortgages, debts, drawn down agreement) against it which are greater than 50% of its overall value?