Financing a holiday home Hulse Ross explains the options open to you on finding the money for a second home. For many people it is a dream come true when they get the keys for their new holiday caravan or park home. Many of these second homes are in beautiful locations providing the perfect escape from stresses at work and from city life. Like-minded people surround you and the community spirit can be great. Some parks boast lots of facilities and entertainment. There are bars and restaurants as well as fishing lakes and safe children’s play areas. What are the finance options? In today’s low interest rate environment the first option has to be the re-mortgaging of your home. The next option is to arrange a secured loan against your main property. There are some specialist companies lend through holiday home manufacturers, like Hulse Ross, and park operators. Other companies like Park Home Assist and Royscot Larch can be approached directly. Park Home Assist 189 Wellingborough Road, Park Home Assist provides finance for park and holiday homes as well as building and contents insurance. It has access to more than 400 mortgage providers throughout Britain and around 20 secured loan providers. You can choose either interest only or repayment (capital amount and interest together) mortgages, or split it by paying a percentage on an interest only basis and the reminder on a repayment basis. Park Home Assist offers free quotations and its website provides an easy-to-use quick quote calculator. RoyScot Larch Milton Road, A member of the Royal Bank of Scotland Group, RoyScot Larch has been providing finance for park homes and holiday homes for more than 14 years. It offers finance for new and previously-owned holiday homes and lodges and will provide finance for up to 80 per cent of the cost of the home. Its lending period is typically 15 years. Interest rates are normally fixed for the full term of the loan but those who borrow more than £25,000 can opt for a variable rate. With variable rate loans you can make lump sum repayments and settle the loan in full at any time. The monthly repayments remain fixed for the agreed period of the loan (unless you choose to increase it). If the Bank of England increases its base rate, the period of the loan may be extended and you may have to make more repayments. Conversely, if Bank of England interest rates fall, your payments may finish earlier. Black Horse Caravan Finance St William House, Black Horse is part of the Lloyds TSB group and provides loans of £1,000 or more for new and second-hand holiday homes. Customers are expected to pay back loans within 10 years and payment protection plans are available. |
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