In a vote of confidence for the care sector, Allica Bank, established in 2019, has reduced its debt service thresholds for both first-time buyers and experienced operators.
Allica’s revised elderly care policy now includes the option for operators to take a capital repayment holiday for up to 24 months. Given what it calls ‘record levels of demand’, the bank is further strengthening its care home commercial mortgage proposition to cover supported living services and specialist adult care.
The move follows the doubling of Allica’s maximum commercial mortgage loan from £5m to £10m, 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, said: “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.
“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.”
