If you’re considering purchasing a park home, you may be wondering whether you can get a mortgage to finance your purchase. The answer is yes, you can get a mortgage on a park home, but the process can be a bit different from getting a traditional mortgage on a bricks and mortar property.
In the following text, we’ll take a closer look at park home mortgages and what you need to know before applying.
What is a Park Home?
First, let’s define what we mean by a park home. A park home is a type of mobile home that is designed to be lived in year-round. They are usually located on dedicated sites or parks, which may have amenities like a clubhouse, swimming pool, or tennis court. Park homes are becoming an increasingly popular housing option in the UK, particularly for retirees or those looking to downsize.
Can You Get a Mortgage on a Park Home?
Yes, you can get a mortgage on a park home. However, because park homes are not considered “real property” (i.e., they are not built on a permanent foundation), they are not eligible for a traditional mortgage. Instead, you’ll need to apply for a park home mortgage, which is specifically designed for this type of property.
Park Home Mortgages
A park home mortgage is similar to a traditional mortgage in many ways. You’ll need to provide proof of income, have a good credit score, and make a down payment (usually around 10% to 20% of the purchase price). However, there are some key differences to keep in mind.
First, park home mortgages are usually offered by specialist lenders who understand the unique characteristics of this type of property. They may have more lenient lending criteria than traditional mortgage lenders, which can be helpful if you have a less-than-perfect credit history.
Second, the interest rates on park home mortgages are typically higher than traditional mortgages, reflecting the fact that park homes are considered a higher-risk investment. Be prepared to shop around and compare rates from different lenders to find the best deal.
What You Need to Know Before Applying
Before you apply for a park home mortgage, there are a few things you should keep in mind.
First, make sure the park home you’re interested in is located on a park that is licensed for residential use. This is important because some parks may only be licensed for holiday use, which means you can’t live in the park home year-round.
Second, check that the park home meets the current building and safety standards. Your lender will likely require an inspection to ensure that the property is in good condition and meets all necessary regulations.
Finally, consider the ongoing costs of owning a park home, such as pitch fees, utilities, and maintenance. Make sure you can comfortably afford these costs in addition to your mortgage payments.
In Conclusion
If you’re considering buying a park home, you can get a mortgage to finance your purchase. However, it’s important to understand that park home mortgages are different from traditional mortgages and may have higher interest rates.
Before applying, make sure the park home is licensed for residential use, meets building and safety standards, and that you can afford the ongoing costs of ownership. With a little research and preparation, you can find the right park home mortgage for your needs and enjoy all the benefits of this unique housing option.
