Insurer forecasts prohibitive lending rates for care sector

Posted on April 1st, by editor in Caring Times. No Comments

In opening the annual conference of Care Forum Wales, sponsor Geoff Patrick, managing director of care home insurers GR Patrick & Co, was blunt in his criticism of the Care Standards Bill now being mooted in Parliament. “Many of you will be obliged, if these standards are implemented, to change the design of your home to meet them, which will require further borrowing with more pressure on your income,” Mr Patrick told the gathering at Ewloe in North Wales. “The million dollar question is ‘who will lend you the money?’ Almost all the major lenders who have exposure in the long term care sector are closing their doors, or trying to off-load their long term care portfolios. Our industry is now perceived as high risk and I can envisage lending rates returning to the early 80s where three, four or five per cent over base rate was the norm.” Mr Patrick said many care home owners were also suffering at the hands of local authorities who ploughed their own self-interested furrow with over-regulation and policing. “D

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