Park home ownership has been growing in popularity in recent years, and it’s not difficult to see why. Usually nestled amongst picturesque surroundings and with thriving communities for support when you need it, it’s no wonder this unique lifestyle appeals to so many.
For those intrigued by the housing options available to those aged 50+, financing is usually one of the first queries to come up in the search for a new home.
Can you get a mortgage on a park home?
For most buyers, the need for a mortgage is irrelevant as they use equity from their existing house to downsize and park homes are often a more affordable alternative however for those still looking for ways to finance their move, unfortunately, you cannot get a mortgage on a park home.
The reason for this is that when you buy a park home, you don’t own the land upon which it sits. The agreement is similar to a lease instead.
Lenders require you to own a property and the land to consider providing a mortgage. In addition, a park home can be moved, and lenders wouldn’t be able to provide a mortgage against a property that could easily be transported to an alternative location. This may change in the future, as park homes continue to become a popular choice.
Alternatives to a mortgage for a park home
Despite the lack of mortgage options on park homes, there’s no need to panic. There are alternative routes to explore to come up with the cash for your park home, such as:
- Use cash savings to purchase your home outright.
- Use equity in your existing house as you downsize Park homes can offer a more afforable option than bricks and motar homes, so you may find that by downsizing you have enough capital to buy your park home outright anyway.
- Use a specialist park home loan provider to fund your purchase. Typically, you won’t get an interest rate that’s as good as those offered on a mortgage, but this may be a suitable route into purchasing the home you want.
While you can’t get a mortgage on a park home, there are alternatives when it comes to financing, and we’re always happy to talk you through the expenses of owning a park home so that you can make the right decision for you.
Are you ready to take a serious look at park home ownership? Why not browse the park homes we have for sale, and make Parklands of Lincoln your home?