At this point our long standing park manageress Judy Weight with 25 years experience answers some typical questions regarding funding.

We don’t have enough spare cash to buy a holiday home out-right, what finance options are open to me or am I also best to mortgage?

Quite simply; No . Traditional mortgages are not generally readily available this sort of purchase. If you have adequate security, for example your own house, you may then be able to get a bank loan for this purpose.

Saying that the most common methods to borrowing the cash is through a finance company, which can be done through a Caravan Finance Broker Brisbane holiday home park like us, a caravan holiday home distributor or through a finance house.

What volume loan is available to me?

Well that depends on a few features, your credit rating, chosen holiday home price and which finance company people approach. Most set their minimum figures at £5, 000 and lend up to 75-90% of the purchase price, around a cash deposit.

Is the interest rate fixed or changeable?

It can be either, again depending on the finance company you approach as well as loan you take out. With fixed rate loans the attention rate stays the same throughout the whole term of the understanding and it has the peace of mind of knowing that the repayments will not likely go up. With a variable interest rate loan the rate is from the finance house base rate meaning that the number of repayments may possibly go up or down as appropriate. The advantage here is you could make lump sum repayments or pay off the loan in its entirety at any time after the first 12 months. In either case it is important to shop around and the majority importantly, check the small print.

Is sub-letting a holiday home better?

It can help cover some of the costs of owning a holiday home, but it surely is unlikely to net you a profit. If you do commit to sub-let you will get the best return by doing the administration, cleaning up and maintenance yourself. Remember to make sure your chosen park allows sub-contract letting and above all only sublet to people you know, for the health of hiring your caravan out for a £100 a week end, finding your holiday home wreaked makes the whole exercise unnecessary.

What else do I need to know about sub-letting?

Well firstly but if your chosen park allows it. A lot of parks, like our-self, do not allow sub letting for the simple fact that people who retain the services of out a caravan just for a weekend at a time you should never look after or respect the facilities or the wishes with other residents, and are more prone to breaking rules together with being noisy in the late and early hours of the overnight. Parks that do allow it may charge them for using facilities. You will need lots of good publicity (use a website) scheduling forms and effective financial control. Yearly gas and electrical tests are obituary and your caravan will have to be emptied to a high standard after each visit. A clear minimize policy (for example whether or not pet’s are allowed) as well as terms and conditions may be required. You’ll have to inform your caravan insurance organisation and you may find your insurance premiums come at a higher amount.