Finance a Park Home
Although finance is available for the purchase of a park home, a conventional mortgage as used on traditional freehold bricks and mortar buildings is not applicable to park homes. A conventional mortgage lender secures their loan on the land registry listing. Whereas buying a park home you own the home outright but you are afforded the use of the land in perpetuity under a licence agreement. Finance providers exist who understand the difference between park homes and traditional build and tailor their products accordingly. Typically the maximum loan amount is 80% of the cost of the home and the loan can be up to a maximum of 25 years. Interest rates will be primarily determined by the economy but will vary depending upon the length of the loan, the amount of the loan and the borrowers individual personal circumstances. There may also be certain conditions that must be met before the loan may be offered, for example, the Park has to be registered with The British Holiday & Park Homes Association (BH&HPA) or the National Caravan Council (NCC). The individual finance providers will be able to inform you of their specific requirements and what terms they are prepared to offer you.
We recommend that you obtain quotations from a least two companies and compare the quotations carefully before making a decision to raise finance on a park home.
Whilst we do not specifically recommend any company nor endorse their products, two Companies that you may wish to contact are:
Park Home Assist, 7 Tudor Court, Wootton Hope Drive, Wootton, Northampton NN4 6FF, Telephone: 0845 345 8029
RoyScot Larch Ltd, 4 Bradfield Court, Milton Road, Drayton, Abingdon, Oxfordshire, OX14 4EF, Telephone: 01235 438280