Caravan Finance

What is a caravan loan?

Caravan finance is a type of personal loan that raises money to buy a caravan or motorhome, either new or used. Although it means you can fund a new vehicle as soon as the loan is approved, you should be certain you could afford monthly repayments before making an application. You’ll own your caravan or motorhome outright, but you will have to pay back the loan monthly.

How do caravan loans work?

Caravan loans are like regular personal loans in that you agree to borrow a lump sum from a lender, which you then pay back over time. You’ll usually make monthly repayments. The total amount depends on how much you borrow and how much you can afford to pay back each month.

There are two ways you can arrange a caravan loan:

• Apply for a personal loan and shop for a vehicle with the money raised
• Agree to a loan from the registered seller which is paid off over time as a finance agreement

Once you find a suitable loan, apply, and are accepted, you’ll receive the money to shop for your vehicle. You’ll then repay the borrowed amount in regular instalments over an agreed timeframe.

New vs used caravan

Although you’ll have the choice between buying a new or used caravan, how much you borrow may determine what you can afford. Find a vehicle that suits your needs and is in good working order before applying for a loan. See the Caravan Club’s checklist for buying a second-hand caravan. Have an idea of your budget before applying and always be certain that you have the finances to cover the monthly payment plan.

You should do plenty of research on any caravan or motorhome you may want to purchase. It’s best to go and view the vehicle before making any financial agreements with the seller if you can. This way, you can be certain the vehicle has no major defects, and be aware of any work or repairs that may need doing.

Which caravan dealer?

If you are approved for caravan finance, you can use the funds to purchase any caravan within your budget from your dealer of choice. This includes:

• Static caravans.
• Used caravans.
• Motorhomes.
• Touring caravans.

While you’re free to purchase from any dealer, some lenders may have certain criteria for approving your caravan purchase. These criteria might consider things like the age, condition, and mileage of the caravan.

Some dealers may also ask for a holding fee (which should be refundable) or a deposit, usually taken off the total purchase price, to take the caravan off sale. So, it’s always good to check the terms and conditions of the sale before handing over any cash.

Applying for a caravan loan

Applying for a caravan loan is the same as applying for any personal loan. You’ll need to complete an application with some personal details and, if asked, how you’re planning to use the money.

We’ll consider the information you provide and let you know if you’re likely to be approved or not. If everything goes well, the money will be transferred into your bank account to cover the cost of your new wheels.

Take a look at our secured loan calculator to see how much you might expect to repay per month.

Commonly asked questions about loans

We take a look at some common queries around our loans to help you decide what type you may prefer.

• How much can I borrow?
  You can borrow from £1,000 up to £100,000, or a larger loan from £100,000 to £500,000. The amount you are approved for will depend on your individual circumstances.
• How long are the repayment terms?
  You can pay back a loan over a period between one to 30 years (10 years, unsecured). These flexible loan terms mean you can spread the cost of your new holiday home over a period that suits you.
• What are the interest rates?
  This will vary depending on the lender you select, your financial history and current circumstances. Our rates for homeowners start at 2.99%.
• How long will it take?
  You will receive your loan in 1-2 weeks for a secured caravan loan, once approved, but we do offer an instant decision in principle. If you qualify for an unsecured caravan loan, then you could receive the money within 1-2 days.
• Are there any loan fees?
  There are no fees on unsecured loans but there is a broker fee of up to 12.5% on secured borrowing amounts, capped at £3,995.

Am I eligible for a loan?

Every lender has their own tick list for eligibility, so we search our wide range of loan products to find the one most suited to your circumstances.

If CCJs are causing you problems, or if you’re self-employed and need help qualifying for a loan, we can help. Retired? There are plenty of caravan loans for pensioners too. We’ll help you find the right one, so you can enjoy your new vehicle.