Can You Purchase a Park Home with A Mortgage?


Park homes are a unique proposition in that while you do own the home itself, you don’t actually own the land it is situated on.

This raises the question of whether or not you can take out a mortgage to secure one.

The simple answer is that most high street lenders will not be willing to offer you a mortgage on a park home, but we’re going to explore the subject in a little more depth, as there are some options available to you if you are not a cash buyer.

Why is there an issue?

We spoke to Justin from Sell My Park Home to find out exactly why it isn’t possible to get a mortgage on a park home, and he said: “The issue arises because when you purchase a park home, although you’ll be taking full ownership of the home itself, the space of land which the home sits on will remain the property of the site owner.

“With a conventional bricks and mortar home, your mortgage is secured against the property’s listing on the Land Registry.

“Unfortunately, because park homes aren’t found on the Land Registry, you’ll find it a lot more difficult to secure a mortgage on one.”

What about holiday lodges?

The situation might be different when it comes to holiday lodges, so the best thing to do if you ‘re purchasing one of these is to head to and search the Land Registry for yourself to see if your potential new property is up there.

If the land which the lodge is situated on is being sold as well, then chances are that you’ll be able to get a mortgage.

What are my options?

If you’re unable to pay for your park home upfront, there are still a couple of options available to you.

For example, you can still secure financial loans, which while nor mortgages, can still go a long way to helping to secure your dream park home.

There are a number of specialist park home finance providers such as UK Park Finance who will allow you to apply for finance for up to 80% of the park home’s value, usually with no upfront fees and a fixed interest rate.

You might find that you only need a little bit of extra cash to secure your park home, and most finance options will allow you to borrow quite low amounts if that’s all you require.

Just like a mortgage, each application is considered on an individual basis, and how much interest you have to pay will be dependent on a number of factors such as the value of the property and how long you will be needing the loan for.

It’s also worth noting that even if you are purchasing a park home using cash you’ve made from selling your old home, it’s still wise to have some cash put aside for a rainy day, because unlike with a bricks and mortar home, you’ll be unable to release equity later on like you usually would be able to.

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