Can you get a mortgage to buy a park home?

04 August 2021

A beautiful park home in your favourite scenic spot is a dream more and more people share. It's a major investment of course, so most people need to borrow before buying, and they often assume that means applying for a mortgage.

However, the answer to the question "can you get a mortgage on a park home?" is a firm no.

That may seem strange, you're buying a residential property after all. But here's the explanation - and why it needn't be a problem.

It's all about the land

When you take out a mortgage, the lender secures the loan against the value of the building and, crucially, the land it stands on.

When you buy a park home, all you own is the physical structure. The plot of land is leased from the owner of the holiday park for a fixed period. With no land to use as security, a mortgage isn't possible.

Loans are a great option

The good news is that thousands of people purchase a park home every year without requiring a mortgage. Alternative forms of funding include loans, and there are lots of finance providers who specialise in this field. They're the best people to turn to, simply because they understand how leisure home purchases work.

Chances are you'll be able to borrow up to 80% of the total purchase price, with a loan period of up to 15 years. As a rule of thumb, the longer the lease on your holiday home's plot, the more easily you'll get a loan, so bear that in mind when checking out possible sites.

One of the quirks of park home purchases is that manufacturers such as Willerby don't sell to you directly. You'll be buying your park home through the owner of the site or an approved distributor. They'll be happy to recommend loan providers.

It pays to shop around

Always remember that you are under no obligation to use their recommended lenders. It's sensible to shop around for the best deal. As long as your lender is registered by the Financial Conduct Authority (FCA), you can be confident that you and your property are in safe hands.

Buy outright or part-exchange

Many park home buyers buy outright, either after selling another property or by using savings.

A part-exchange deal is also worth exploring if you are considering moving permanently to a park home. If your current property is worth more than the park home you want to buy, a part-exchange will entirely fund the purchase and leave you with a handy lump sum to play with.

Why choose Willerby?

Now you know that finding finance for a park home can be straightforward, it's time to explore the subject in greater depth. The Willerby First Time Buyer's Guide is a great place to start turning your dream into reality.

Perhaps you've already decided to buy your dream holiday home and want to get things moving. A great next step is to visit our showgrounds. That's where you can explore the different Willerby models in detail; experience the sense of space and luxury; get a real feel for modern park home living. We look forward to welcoming you.