'Business loan' type thing to become a foster carer?

[EBDteacher]

I would like to become a foster carer. Already teach children with severe & complex behavioural difficulties so have a bit of background.

However, we do not have a spare bedroom and can't afford to move. We could afford a bigger mortgage but don't have the capital for stamp duty, fees etc. Is there any precedent for getting a loan to start a fostering 'business'. I certainly DON'T see fostering like that BTW- just thinking from a bank's point of view and wondering if there is any way round my no spare room problem!

What age would you be thinking of taking on? I have no idea about this but say you were going to offer to take on an older child it wouldn't surprise me to hear the LA would loan you the money.... But maybe not! Would you try for a bank loan? Good luck.

My experience is all primary age so probably 0-10.

LA's have so little money atm I'd be surprised, although I know they are very short of placements.

That's kind of what I was asking- whether you can gat a bank loan to cover the cost of moving house. Don't banks want there to be something tangible to show for a loan total lack of financial knowledge?

I realised that after i posted, sorry! You could try endsleigh financial. They give loans to foster carers unlike most banks these days and just explain what you are planning on doing. Worth a call perhaps. Are you talking a lot of money?

I would be really surprised if this would be possible.

From a local authority's point of view they would most likely be unwilling to approve you as a carer without you actually having the space to care for a child on the other hand if a bank was willing to loan for a 'fostering business' (which I think is highly unlikely, but I will come to that) they would presumabley want you to show that you were an approved foster carer before they did that so you would be in a catch 22, without one you could not get the other IYSWIM.

As for a bank loan to start a 'fostering business' I am presuming that you are looking at a fee paid fostering scheme (one in which you receive a fee/wage for being a carer) so that you can repay this loan. Fee paid schemes vary a great deal in the level of fee that they pay to the carer and most (possibley all, but I could be wrong) fee paid foster carers are considered self employed and not emplyees of the local authority/IFA. Also each scheme has its own rules about how and when it pays its carers and many pay nothing when/if you have no children in placement (which can happen a lot more often than you might think). Getting bank loans as a self employed person can be really difficult, added to that the fact that your income could be so changeable and I would be really surprised if the bank would make a loan in these circumstances.

I have come across (a few rare) cases of foster carers being given financial assistance to move home, but I have only known of this happening for well established carers who are being asked to care for a large family group or a child who needs special adaptations in the home.

Sorry, I guess none of that is what you want to hear

Hi :)

We are looking into this kind of thing but for adults with learning disabilties. Have been told this CAN be done in one of two ways - either a specialist mortgage or a business loan.

Anyway, here is one link.
www.endsleigh-financial.co.uk/Money/Pages/Mortgages-Foster-Carers.aspx