Holiday Home Finance

FAQs

It’s understandable that you will have questions about taking on a loan, and we want to make sure all our customers fully understand everything involved. If after reading these questions, you’re still not sure about something, get in touch with us and we’ll do our best to help you out.

Are all holiday homes eligible for finance?

• All new holiday homes are eligible to be bought using finance, and a selection of pre-owned holiday homes are too. As a general rule, finance can be taken out on caravans up to 3 years old, and lodges up to 10 years old, however exceptions to this may apply.

How long is a finance Illustration valid for?

• A finance Illustration is valid for 7 days. (As finance rates can change, the funder will try to honour all finance illustrations unless there is a dramatic change in finance rates).

Is anyone eligible to apply for finance?

• You must be over 18 years of age but there is no upper age limit.

Do I have to pass a credit check?

• Yes, our independent broker will need to carry out a credit check to confirm your suitability for a loan.

What documents do I need?

• When applying for the finance the broker will get the personal information required from you for a proposal. The following supporting information will also be required: Asset and Liability statement (Broker will email you one to fill out), 4 months up-to-date bank statements, proof of income (copy of payslips or 4 months’ worth or pension statements) and identification from all named on the document.

What does the credit check involve?

• The funder looking to provide the finance will perform a credit check with one of the credit reference agencies. The funder will be looking for missed payments, defaults and CCJ’s (County Court Judgments). They also use the credit reference agency to check the balances on any outstanding finance to ensure the applicant is not over stretching themselves and can afford to take out the finance.

What is the required deposit?

• The minimum required deposit is 20% of the total cost of the holiday home, including the cost of the decking. If you wish to borrow less, then you can put down a larger deposit. (Proof of deposit maybe required).

What is the maximum amount I can borrow?

• You can borrow up to 80% of the total cost of your holiday home, including the cost of the decking, subject to finance approval and affordability checks.

What is the minimum amount I can borrow?

• £15,000 is the minimum amount you can borrow. Therefore, it is not possible to finance a Holiday Home with a total value of less than £18,750.

Who do I pay my deposit to?

• The deposit can be paid to us, or to the finance company.

What are the repayment term options?

• You can make your repayments over a period of between 3 and 7 years. On your initial consultation, our Sales Team will talk you through how different repayment periods will affect your monthly repayments, together with the value of the deposit you are putting down.

What is the interest rate?

• The interest rate is fixed at 11%, or 11.6% APR.

Will the interest rate ever change during the term of the finance?

• No, this is a fixed rate and will not change.

How are monthly repayments made/taken?

• When the finance documents are signed, you will also sign a direct debit mandate. All payments will then be taken by direct debit and will go to the finance company.

Can I make extra/larger payments to reduce my repayment period?

• Yes, you can make over payments, this is capped to 10% of the amount you borrowed each year.

Can I pay for the pitch fee with finance too?

• No, your pitch fee is paid direct to us each year, and cannot be financed.

I want to purchase a Holiday Home with a friend, can we share the repayments?

• Yes, up to 4 people can be named on the finance document, you will all then be liable for the finance. You may need to set up a new bank account for all the payments to come out of or agree to whom will be taking that responsibility. All parties named on the document will have to be named on the proposal and a credit check will be preformed on all parties involved.

What happens if I want to sell my Holiday Home before the finance is paid off?

• We encourage all customers to consider the purchase decision fully, and to think of a Holiday Home as a long-term commitment for the duration of the license period. However, we know that circumstances do change, and it is possible to sell a Holiday Home that you are still financing. You can either settle the finance in full before you put the Holiday Home up for sale, or when the new customer pays for the Holiday Home they can pay the settlement amount on your behalf and pay you the difference.

What happens if I can no longer afford the repayments?

• Speak to the broker, lender and to us, we can then all work with you to come up with a solution.

Is there a late repayment fee?

• The lender will apply the formula as at the settlement date and is allowed to add interest for 30 days or one calendar month after that (but only if the original length of the loan was more than one year).

Is there an early repayment fee?

• See this document which breaks down the details on paying your loan off early.