BUY AND SELL

STATIC CARAVAN FINANCE

Most people buy a static caravan with savings, a loan, or a mix of the two. This page explains the usual ways to pay, what to check before you borrow, and the warning signs to look out for. It is general information, not advice. If you are unsure, speak to an independent adviser or use the free guidance from MoneyHelper.

WHAT YOU ARE BUYING

When you buy a static caravan on a holiday park, you own the caravan. You do not own the land it stands on. A pitch licence agreement with the park lets the caravan stay on its pitch for a set number of years, in return for a yearly pitch fee.

This matters for finance. A static caravan is not property in the way a house is. The trade body, the National Caravan Council (NCC), says a holiday caravan is a depreciating asset and its resale value will be less than you paid. Think of it as a lifestyle purchase, not an investment.

NCC member parks agree a licence of at least 12 years for a new caravan. If you buy a used one, the licence usually runs for what is left of those 12 years, counted from when the caravan was first sold to a consumer. Read the licence before you think about borrowing.

HOW BUYERS USUALLY PAY

• Cash. Savings mean no interest and no credit check. Many buyers of used caravans pay this way.
• Specialist caravan or holiday home finance. Usually hire purchase. You pay a deposit, then fixed monthly payments. The lender owns the caravan until the last payment is made.
• Park finance schemes. Many parks and dealers arrange finance on site through a lender or broker. Some bundle in extras, such as pitch fees.
• Personal loans. An unsecured loan from a bank or other lender. You own the caravan from day one. Terms are often shorter than hire purchase.
• Remortgaging or a further advance on your home. This can mean a lower rate, but the debt is secured on your home and may run for many years.

Whatever you choose, finance usually covers the caravan only. Pitch fees, insurance, utilities and upkeep are paid on top.

TYPICAL TERMS IN GENERAL

Terms vary by lender, by your credit history and by the age of the caravan. We do not quote rates here because they change often. Always compare the APR and the total amount payable on a written quote.

As a broad guide, one broker (Kandoo, guide updated June 2026) describes caravan loan terms of about one to 15 years, a deposit of at least 10 per cent for hire purchase, and lenders that often want the caravan to be under about 10 to 20 years old by the end of the agreement. Your lender may differ.

QUESTIONS TO ASK BEFORE YOU BORROW

• What is the total amount I will pay back, not just the monthly payment?
• Does the loan end before my pitch licence ends? You do not want to be paying for a caravan that has had to leave the park.
• Can I afford the pitch fee, insurance and running costs on top of the repayments? Pitch fees usually rise each year.
• Can I pay off early, and is there a fee? Under the Consumer Credit Act, paying off a regulated agreement early reduces the total you pay.
• What happens if I want to sell before the loan is paid off? With hire purchase, the lender owns the caravan until you settle.
• Is the lender or broker on the FCA register?
• What commission does the broker or park receive, and how does it affect what I pay?

For most regulated credit agreements you also have 14 days after signing to withdraw. Citizens Advice explains these rights in plain terms.

WARNING SIGNS

• Pressure to sign on the day, or a deal that "ends tonight".
• Being told the caravan is an investment that will hold or grow its value.
• Rental income promised as a way to cover the repayments. Many parks limit or forbid letting, and income is never certain.
• A loan term longer than the time left on the pitch licence.
• Finance quotes that show only the monthly figure.
• A firm that will not say how it is paid, or is not on the FCA register.
• Being asked to pay a fee upfront before a loan is approved.

HOW STATIC STAYS FITS IN

Static Stays is a place for private owners to let and sell static caravans. We do not charge commission on sales. We are not a lender and we do not give financial advice.

If we introduce you to a finance partner, we act as a credit introducer. Any introduction follows FCA rules. We will tell you before you apply if we may receive a commission from that partner, and you can ask us how much. The lender, not Static Stays, will decide whether to offer you credit.

Sources: thencc.org.uk thencc.org.uk kandoo.co.uk citizensadvice.org.uk handbook.fca.org.uk register.fca.org.uk moneyhelper.org.uk. Checked October 2026. Information, not financial advice.