How to Finance Your Park Home: Loans, Grants & Budgeting Tips (UK)

Buying a park home in the UK can be an affordable alternative to traditional housing, but financing a park home works very differently from buying a standard property. Most park homes are not eligible for traditional mortgages, which means buyers need to explore alternative funding options.

This guide explains the main ways to finance a park home, including loans, possible grants, and smart budgeting tips to help you plan with confidence.

Can You Get a Mortgage for a Park Home?

In most cases, standard residential mortgages are not available for park homes because they are classed as mobile homes rather than permanent buildings. However, there are still several viable financing routes depending on your circumstances.

Park Home Financing Options in the USavings or Cash Purchase

Many buyers choose to purchase park homes outright using savings or proceeds from selling a previous property. This avoids interest costs and makes the buying process quicker and simpler.

Pros:

• No interest or monthly repayments
• Faster completion

Cons:

• Requires significant upfront capital

Personal Loans

Some buyers use unsecured personal loans to fund part or all of their park home purchase.

Pros:

• Widely available
• Flexible repayment terms

Cons:

• Higher interest rates
• Lower borrowing limits

Specialist Park Home Loans

A limited number of lenders offer specialist finance products specifically designed for park homes.

Pros:

• Tailored to park home purchases
• Longer repayment terms than personal loans

Cons:

• Fewer lenders available
• Eligibility criteria may be stricter

Dealer or Manufacturer Finance

Some park home dealers offer finance packages directly to buyers, particularly for new homes.

Pros:

• Convenient
• May include incentives

Cons:

• Interest rates can vary
• Limited choice

Are There Grants Available for Park Home Owners?

While direct grants to buy park homes are rare, some local councils offer support for:

• Energy efficiency improvements
• Insulation upgrades
• Heating system replacements

Eligibility varies by location, so it’s worth checking with your local authority or energy efficiency schemes.

Budgeting Tips for Park Home Buyers

Account for Ongoing Costs

Beyond the purchase price, budget for:

• Monthly pitch fees
• Council tax
• Utilities
• Insurance
• Maintenance and repairs

Plan for Annual Increases

Pitch fees and utility costs may increase annually. Always build a financial buffer into your budget.

Factor in Selling Costs

When selling your park home, remember the site owner’s commission (up to 10%) and potential legal or agent fees.

Improving Your Chances of Approval

• Maintain a strong credit history
• Reduce existing debts
• Provide clear proof of income or pension
• Choose licensed, reputable parks

Using professional resources like the PHHPA Directory can help you connect with trusted sellers and finance-aware park operators.

Final Thoughts

Financing a park home may require more planning than a traditional home purchase, but with the right approach, it can still be an affordable and rewarding option. Understanding your funding choices and budgeting realistically will help you move forward with confidence.