Can You Get a Mortgage on a Park Home?,

Dreaming of a holiday park home? You're not alone. Holiday park homes are increasingly popular, offering a unique blend of comfort, convenience, and investment potential.

However, financing a park home can be a bit different from the traditional bricks-and-mortar home-buying process. One common question that arises is whether you can secure a mortgage for a park home.

Unfortunately, traditional mortgages are off the table. Why? Because they're designed for properties where you also own the land. With park homes, you own the home but not the land it sits on.

In this comprehensive guide, we'll explore the world of park home finance options to help you decide how best to make your park home dream a reality.

Park Home Basics Explained

A park home, built to British Standard (BS 3632), offers a unique and quality living space within well-maintained parks, making it an attractive choice. When it comes to holiday park homes, think of them as your home away from home, but with a twist of adventure.

Unlike residential park homes, these are specifically designed for leisure and holiday purposes. Situated in holiday parks like Holiday Resort Unity or Brean Country Club, they offer a unique blend of comfort and convenience without the commitment of traditional property ownership.

It's not just a property; it's a lifestyle choice that comes with a community vibe, on-site amenities, and the freedom to escape whenever you fancy.

What is a Park Home?

A park home is a specially designed and regulated type of housing that offers a unique and community-centric living or holiday experience. They are constructed to high standards (BS 3632), often located in picturesque parks, and come in various sizes and layouts to suit different preferences and needs. They can range from cosy single-bedroom homes to spacious multi-bedroom residences.

Also worth noting is that the term mobile home can often refer to two types of properties; Residential park homes and Holiday lodges.

Residential park homes can offer an affordable and low-maintenance housing solution for retirees and individuals seeking a peaceful lifestyle. Whereas holiday lodges offer a home-from-home option to holiday in your favourite place as many times as you are able.

When it comes to ownership of either residential or holiday park homes, you typically own the structure itself but not the land it sits on. Instead, you lease the land within the residential or holiday park, and this lease often comes with associated fees for park maintenance and services.

Benefits of Buying a Holiday Park Home

Why consider a park home for your retirement? Here are some benefits that make them an attractive option for older individuals:

Serene Environment: Park homes are often nestled in beautiful, peaceful surroundings.
Community Living: Enjoy a sense of community with like-minded individuals.
Low Maintenance: Park homes require less maintenance compared to traditional houses.

Obtaining a Mortgage for a Park Home

Securing a traditional mortgage for a park home is unfortunately not possible because, unlike conventional homes, park home owners typically don't own the land on which their homes are located.

Instead, they lease the land within the residential or holiday park, which makes them ineligible for standard mortgages that are typically tied to property ownership.

Understanding Park Home Finance

Here's a breakdown of the specialist finance options available at HRU Holiday Home Sales.

HRU offers a range of fixed-rate finance options. You can choose the package that suits you best. We aim to make the process as straightforward as possible with repayment options that work for you.

Finance Essentials at HRU

Criteria	Details
Deposit	20% of the caravan's value
Monthly Payments	Affordable rates
Finance Options	Fixed-rate packages available

Factors to Consider When Applying for Park Home Finance

When looking into options to finance the purchase of your mobile home, remember to consider the following fees and payments you will have on top of the financing:

Annual Fees: Starting from £5185 based on a Super Pitch.
Additional Costs: Insurance, gas, electricity, and rates.

One option to cover some of these additional fees is to sublet the home for a number of weeks in the year in order to recover some of the outgoing costs. If you do this in a self managed way you then gain 100% of the rental cost to put towards fees.

HRU Holiday Home Sales can assist with your holiday letting; reach out for more information.

Subletting Examples

Scenario	Weeks Available for Sublet	Estimated Income Example
School Holidays	10 weeks	Around £6679
Mixed Use	20 weeks	Around £8371
Mostly Sublet	35 weeks	Around £10,894

Financing a Park Home Purchase

When it comes to financing your park home purchase, we provide flexible solutions to suit your needs. Of course there is also the option to buy a park home outright if you are in a position to do so.

Ready to make your park home dreams come true? Book a free consultation to discuss your finance options!

Part-Exchange Options for Park Home Buyers

There are some external companies who offer part exchange options to help finance your park home however you may notice the value of your property is significantly lower when looking into this as an option. If you are looking for a holiday home and therefore wish to keep hold of your current property, we recommend getting in contact with us to discuss your finance options.

Wrap Up & Key Takeaways

Owning a holiday park home at HRU offers a multitude of benefits, from family time to financial planning. While a traditional mortgage is off the table, HRU's specialist caravan finance packages make it easy and affordable to own your dream holiday home.

Option	Availability	Suitability for Holiday Park Homes
Traditional Mortgage	No	Not Applicable
HRU Finance	Yes	Tailored for Holiday Park Homes