Static Caravan Finance: How to Fund Your Coastal Escape

Everything you need to know about static caravan finance, deposits, monthly payments, and finding the right plan for your budget.

Key Facts: Static Caravan Finance at a Glance

If you only read one section, make it this one.

Static Caravan Finance: Your Complete Guide

You've found the park.

You can imagine yourself here — morning walks on Tywyn Beach, afternoon rounds at Royal St David's, quiet evenings watching the sun set over Cardigan Bay.

Now comes the practical bit. How do you actually pay for it?

At Gwynedd Holiday Home Park, we meet buyers every week who are ready to commit but unsure how finance works.

This guide answers the questions they ask us — clearly, and without the jargon.

Who this guide is for

This guide is for first-time buyers.

You might be looking at a pre-owned starter caravan for £35,000 or a luxury lodge for £150,000.

If you don't have the full amount in cash, this guide explains your options so you can make an informed choice.

1. Understanding Static Caravan Finance

Static caravan finance is a way to borrow money to purchase a holiday home. It works similarly to car finance.

You pay a deposit upfront and repay the rest — plus interest — over a fixed period.

Static caravans vs holiday lodges

The mechanics are the same, but the terms often differ.

Because lodges (built to BS3632 residential spec) hold their value longer, lenders may offer repayment terms up to 10 or even 15 years.

Standard static caravans are typically capped at 7–10 years depending on the age of the unit.

Who actually provides the finance?

Holiday parks rarely lend their own money. At Salop Caravan Sites, we act as a credit broker.

Park Finance Partners: We partner with specialist, regulated lenders (such as Black Horse) who understand the leisure market. We handle the paperwork, but your contract is with the lender.

Personal Loans: You can go directly to your own bank (e.g., Tesco, Sainsbury's, Lloyds) for a personal loan. The park is not involved in this transaction.

2. Comparing Your Options

There is no "best" option, only the right option for your circumstances.

3. The "Licence Gap": Why Timing Matters

This is one of the most important things to check.

Every holiday home comes with a Licence Agreement — the length of time the park allows that specific unit to remain on site (e.g., 15 or 20 years from new).

Example of a Mismatch:

• You buy a used caravan that has 6 years left on its park licence.
• You take out finance over 10 years to keep monthly payments low.
• The Result: In Year 6, the caravan must leave the park, but you still have 4 years of payments left.

At Gwynedd, we will help you check the licence length of any unit you look at to ensure your finance plan makes sense.

Lenders will also look at the age of the caravan or lodge and how long is left on its park licence.

4. Affordability: What Lenders Look For

A common question we hear is: "Can I rent out the caravan to pay for the finance?"

It is important to know the rules before you plan your budget.

Lender Rules: Regulated lenders look at your guaranteed personal income (salary/pension). They generally will not include projected, unguaranteed holiday rental income in their affordability checks.

Park Rules (Gwynedd Holiday Home Park): Gwynedd is an owners-only park, and subletting is not permitted.

Across Salop Caravan Sites, our parks are designed for peaceful, private ownership rather than short-stay holiday lets.

Your finance and site fees must be affordable from your own income.

The Affordability Check

Before you sign, ask yourself:

"Can I comfortably pay the monthly finance and annual site fees from my current salary or pension?"

If the answer is yes, you can move forward with confidence.

5. Who Gets Approved?

While we cannot guarantee acceptance, successful applicants typically meet these criteria:

• Age: 18+ (some lenders require 21+).
• Residency: UK resident for at least 3 years.
• Income: A steady source of income (salary, self-employed profits, or pension).
• Credit: A fair-to-good credit history with no recent defaults or CCJs.
• Status: Joint applications (partners/spouses) are welcomed and often help demonstrate affordability.

Note for Self-Employed: Lenders typically ask for your last 2 years of accounts or tax returns (SA302s) to prove steady income.

6. Budgeting for the Full Picture

Step 1: The "Real Cost" Budget

Don't just look at the monthly finance repayment. You need to budget for the total package.

On the Mid Wales coast, costs typically include:

• Finance Repayment: (e.g., £300–£600/month)
• Site Fees: The rent for your pitch. (Our fees start from £4,435 for a single unit).
• Running Costs: Insurance, gas, electric, and winter drain-down services.

Step 2: Shortlist Parks & Units

Visit the park.

A finance quote is meaningless until you know the "Total Cash Price" of the unit you want.

At Gwynedd, we display clear prices so you can calculate your deposit (typically 10–20%).

Step 3: The Quote & "Soft Check"

Ask us for a quote.

We can often perform a "soft search" eligibility check which gives you an indication of acceptance without affecting your credit score.

7. Planning Ahead: Selling & Upgrading

It is important to understand your options for the future.

Selling on Park: Most owners sell their unit through the park. We help market the home to new buyers. A commission (plus VAT) is payable to the park upon sale.

Clearing Finance: If you sell, the finance must be settled immediately. If your caravan is worth less than the finance balance (negative equity), you will need to pay the difference in cash to clear the debt.

Upgrading: Many owners use their current holiday home as a part-exchange for a newer model. We can work with lenders to settle the old agreement and start a new one for the new unit.

8. Is Finance Right For You?

Responsible lending means being realistic about affordability. Finance may not be right for you if:

• You rely on overtime/bonuses: If your basic salary doesn't cover the payments, it might be a stretch.
• You are planning a major life change: (e.g., retiring or moving house in the next 12 months) which might change your income or increase your costs.
• You are already fully stretched: If you are finding it hard to pay existing bills, a holiday home should wait.

What if life changes?

If you lose your job, separate from a partner or your circumstances change, contact your lender immediately. They are there to help.

Many regulated Hire Purchase agreements include voluntary termination rights. These may allow you to end the agreement early once you have paid around 50% of the total amount payable (including deposit and fees).

The exact rules, figures and conditions will be set out in your credit agreement. It's important to read this carefully and speak to the lender if you're unsure.

Most regulated credit agreements also include a short cooling-off period (usually around 14 days) after signing, during which you can change your mind.

Making It Work For You

Finance isn't complicated. But it does need to be right for you.

The monthly payment has to work for the full term. The loan should align with your licence. And you need to be comfortable with what you can afford.

Get those three things right, and finance becomes a helpful tool that gets you into your dream holiday home sooner.

That's what we want for every owner at Gwynedd. A holiday home you can actually enjoy.

Your Next Steps

1. Check your credit file (use free apps like ClearScore or Experian).
2. Calculate your total budget (Finance + Site Fees + Insurance).
3. Ask for a quote from us before you fall in love with a specific unit.

Gwynedd at a Glance

Common Questions Answered

Can I live in my holiday home full-time?
No. Gwynedd is a holiday park, not a residential park. You must have a separate main residence.

Can I sublet or Airbnb my caravan at Gwynedd?
No. Gwynedd is an owners-only park and subletting is not permitted. The park is designed for a peaceful owner community rather than short-stay holiday lets.

Will applying for finance affect my credit score?
A full finance application will normally include a hard credit search, which appears on your credit file. Making payments on time can help your profile; missed or late payments will affect it.

Can I pay off the finance early?
Many agreements allow early settlement. You'll usually pay the remaining balance plus an adjustment to the interest. The exact terms and any fees will be set out in your credit agreement.

What happens if my circumstances change and I'm finding it difficult to pay?
Contact your lender immediately. Some regulated Hire Purchase agreements include options such as voluntary termination, but the rules, figures and conditions are specific to your agreement, so always check the paperwork and speak to the lender.

Can I still get finance if I'm self-employed or retired?
Possibly, yes – it's always subject to status and affordability. Lenders will usually look at proven income, such as accounts, tax returns or pension statements, and your overall ability to afford the payments.

Can I get finance if I've had credit issues in the past?
Some lenders may consider applicants with historic issues, but recent defaults or CCJs will make acceptance harder. Decisions are always case by case and based on your current credit profile and affordability.

Ready to discuss your options?

At Salop Caravan Sites, we believe in clarity. We will walk you through the costs, the licence lengths, and the finance options without the pressure.

Disclaimer: This guide is for general information only and reflects typical industry practice as of 2025/2026. While we aim for accuracy, we make no representations or warranties about the completeness, accuracy, or reliability of the information provided, and we accept no liability for any errors or omissions. Costs, policies, licence terms, and facilities vary between parks and manufacturers and may change without notice. Any reliance you place on this information is at your own risk — always confirm details directly with the park manager before making any purchase decision. This content does not constitute financial, legal, or professional advice. If you need specific guidance, please consult a qualified professional.