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Can A Mortgage Be Secured On A Park Home?

The simple truth is that mortgages cannot be secured on park home properties. The reason for this, despite the amount of people who choose to permanently live in park homes, is due the specific way in which mortgages function.

All standard properties made of bricks and mortar in the UK are required to be registered on the UK’s land registry list. When a person takes out a mortgage in order to purchase a property, the lender providing that mortgage secures the mortgage against said property’s land registry listing. This means that when you purchase a permanent and fixed property which has been made of brick and mortar you are too purchasing the land upon the property sits. Further, this is why some property purchasers and developers buy properties which they intend to or end up knocking down and rebuilding – sometimes the land is worth more than the building residing upon it. In all cases, the land purchased as part of the property purchase will contribute to large extent as to a property’s overall value.

In contrast, because park homes are bought and sold, as explained by Justin of Sell My Park Home, more like caravans, with buyers owning the home itself but having no claim to the land upon which a park home sits, a mortgage is impossible to secure. Further, and as he goes on to state, ‘The buying and selling of residential park homes, lodges and holiday homes is a specialist field which takes expert knowledge’ and as such those looking to buy a park home are advised to do so through a specialist company, especially when purchasing their first park home.

Is Finance Available When Purchasing a Park Home?

The good news is that although mortgages cannot be secured against park homes, there are consequently numerous companies who specialise in helping and assisting people to afford to buy park homes, whether to be used as holiday accommodation or as their own permanent residence.

In the UK finance to help with the purchase of a park home is usually offered on up to 80% of the value of a park home, and subject of course to each individual application. In this respect, applying for finance in order to purchase or invest in a park home property does share some  similarities with taking out a mortgage, but the nature of the finance applied for will be according to terms more akin to those provided by companies that provide finance when purchasing for example a car or caravan.

As such, when applying for finance in order to purchase a park home it is imperative to look at a number and range of finance providers who specialise in doing exactly that, not only to secure the best deal available, but often to ascertain exactly what deal you can hope to expect, based on your specific circumstances and individual situation. Further, those interested in purchasing a park home, through doing so via an established and reputable park, holiday and lodge home company, stand the best chance of both securing finance and the best deal on that finance.


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Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up with repayments on your mortgage

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