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Looking to Finance a Caravan or Motorhome? 4 Reasons to Consider a Secured Loan

Are you looking to buy a caravan or motorhome?

Caravanning is a British institution. According to the UK Travel Survey (UKTS), 4.68 million caravan and motorhome trips were taken in the UK in 2009. And, a staggering 77 million bed nights were spent in caravans, tents and motorhomes by UK residents in 2009.

However, caravans and motor homes are not cheap. It is easy to spend upwards of £10,000 on a good quality caravan and £30,000 or more on a motorhome. So, if you are looking to buy a motor home or caravan, financing your purchase is likely to be a major consideration.

That’s where a secured homeowner loan can help you.

What Is a Secured Homeowner Loan?

A secured homeowner loan lets you to finance your caravan or motorhome by borrowing a sum of cash based on the available equity in your home. A homeowner loan is secured against your house and you can typically choose the term of the loan and the amount you wish to borrow, based on the equity in your property.

Homeowner loans are different from ‘unsecured loans’ as the lender takes a legal interest in your home. This means that you have to keep up repayments on your secured homeowner loan otherwise your house is at risk.

Caravan and Motor Home Popularity

Caravans have become ever increasingly high profile over recent years. Whilst the BBC television series Top Gear may have destroyed 56 caravans over recent years, presenter Richard Hammond also wrote a book entitled A Short History of Caravans. There is even a dedicated Caravan Channel on satellite television that broadcasts four days a week.

The popularity of motor homes and caravans also endures. Mintel report that one in five people has taken a camping or caravanning holiday in the last three years whilst registrations of new touring caravans rose by 14 per cent in the first quarter of 2010.

Why a Secured Homeowner Loan Is Great for Financing a Caravan or Motor Home

Secured homeowner loans are easy to arrange, competitively priced and available to you if you are self-employed or have a less than perfect credit history.

Unsecured loans have become more and more difficult to obtain in recent years as banks tighten their criteria. Many of them also now carry higher interest rates than they did just a few years ago.

As a homeowner loan is secured on your property, the lender has much more security. If you fail to pay an unsecured loan, the lender has no collateral on which to stake a claim. However with a secured loan, a lender has a legal interest in your home meaning they are much more comfortable with lending to you than an unsecured provider may be.

You can also typically take a secured homeowner loan over a longer time period, making the monthly repayments much more affordable to you.

And, if you have a less than perfect credit history, you may still be accepted for a secured homeowner loan to buy your caravan or motor home.

The UKTS found that camping and caravanning trips by UK residents grew by 20 per cent in 2009. If you are looking to buy a motor home or caravan and join millions of Brits enjoying these holidays, a secured homeowner loan could be the perfect answer.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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