Is it possible to find mortgages for mobile homes?
If you have decided that you'd much rather put your money into a mobile home than a traditional bricks and mortar house, then you'll no doubt have a lot of questions as to the viability of your idea. Is it possible to find mortgages for mobile homes? Are there other types of lending options available?
Maybe you're looking to buy your mobile home as a second home if you're retired and have already paid off your house mortgage, but would like to travel at your leisure. We hope to cover all these topics and more with this guide to mortgages and more for mobile homes.
As a general rule, the vast majority of banks, building societies and financial institutions will not allow you to take out a mortgage in order to buy a mobile home. The reason for this is because unlike a traditional house, the value of a mobile home will always decrease over time as your mobile home ages.
However it is possible to take out a traditional loan which will allow you to pay for your mobile home. A good rule of thumb here is to ensure that you have some money put away in savings before considering this type of loan. Unlike mortgages, the interest rates are significantly higher for regular loans, so ideally you would want to be taking as small a loan as possible. This means that you should use a portion of your savings to act as a down payment, or deposit, on the mobile home, reducing the amount of money you need to request from your bank, and therefore decreasing your loan repayments to a more manageable level.
One of the areas you will save when it comes to mobile homes is in stamp duty, as it is not applicable to this type of dwelling. Unfortunately there are other charges associated with mobile homes, including pitch fees which you must pay on a monthly basis to the owner of the land on which your home is parked. Pitch fees are usually between £70-120 per month, making them quite affordable.
Before you sign any agreement or contract with regards to your pitching rights, it is always best to have a solicitor who specialises in this area to take a look over the terms so that you can ensure you are getting the best deal available, with no potential surprises lurking around the corner. Even though you have freed yourself from the shackles of bricks and mortar living, you still want to make sure that you're covered in the event of unexpected changes in terms.