Loans for caravans
Yearning for a night under the stars in your very own caravan but not sure how to finance it? A loan is one option. Check out our guide to finding the best loans to help you buy your new caravan.
A new caravan will typically set you back more than £10,000, and some cost at least double that. If you’re planning on a string of caravan holidays on the coast, or perhaps in the countryside, but you’re not sure how you can afford to turn your dreams into a reality, a loan is one way that could help.
We’ve put together a guide to help you find the best caravan loans for you.
Compare personal loans to fund your caravan
How can I finance a new caravan?
There are several options available to you when searching for a loan to cover the purchase of a caravan. The options available to you are:
Key features of personal loans at a quick glance
- Loan terms. The terms can include the loan duration as well as interest rates and repayment plans.
- Loan amounts. The amount of money that you are allowed to borrow.
- Get a personalised quote. This will give you an indication about the terms in which a provider will lend you money, and will have no bearing on your credit rating.
- Price matching. Some providers offer a price guarantee to match or beat offers from other providers.
- Monthly repayments. You will be able to repay your loan in monthly installments.
- Repayment holidays. This is an agreed period with your lender, perhaps either one or two months, where you will not have to make repayments. However, interest will still build up.
- Quick decisions. Providers will usually make a fast decision about whether they will lend you money or not.
- Access to funds. You are able to get access to all the funds upfront.
- Fees. You may incur extra costs, such as interest or late payment fees.
- Perks. With some loans, there may be special benefits such as a 0% interest period.
- Overpayments. If you wish to pay off your loan sooner than agreed, making overpayments is the way to do it. Most overpayments will not incur a penalty so long as you remain within the overpayment limit. It is important to check the small print of your loan before you make an overpayment.
- Early repayment. For many loans, you will incur a penalty and additional costs if you repay your loan in full earlier than expected.
How should I compare different loans for caravans?
To compare loans, you should focus on the important features of each loan, and how they differ from one another. We’ve listed some characteristics for you to consider:
- Loan amount. The amount that you can borrow will differ between lenders, so make sure you have a value in mind when choosing your loan.
- Interest rate. There are some loans available that are interest-free, which will save you some money. If the loans you are considering are not interest-free, make sure you take the interest rate into consideration.
- Fees. You may be required to pay upfront or ongoing costs that will add to the cost of your loan.
- Eligibility criteria. Whilst you may be eligible for some loans, you may not meet the criteria for others.
- APR. The Annual Percentage Rate is designed to provide consumers with an annual summary cost for the loan, including any setup fees and interest. Different loans will have different APRs, but it is important to remember that they are only representative, and your costs may be more expensive.
- Loan terms. The length of the loan period may differ between providers, as well as the terms and conditions of taking out the loan.
- Overall cost. As well as the loan amount, you should also take into consideration any start up costs and any interest.
- Early repayment. Although you may find yourself in a position to pay off your loan early, some loans charge extra costs if you repay your loan too early.
Am I eligible for a personal loan?
You should only apply for a personal loan to finance your caravan if you are certain that you can meet the repayment terms. Otherwise, you will face additional costs and it may impact your credit rating.
Before you apply for a personal loan, make sure you meet the following criteria:
- You are over the age of 18.
- You will be no older than 70 when the loan term finishes.
- You have been a UK resident for over 3 years.
- You have a regular income above £12,000.
- If you are self-employed, you have been so for over 2 years.
- You must have a good credit rating, with no history of bankruptcy or County Court Judgements.
- You hold a UK bank or building society account that is able to pay direct debits.
How can I apply for a loan?
If you have decided that a provider’s loan is right for you, simply fill in the application form for the loan via its website. You will need proof of the following:
- Your ID
- Your address details for the past 3 years.
- Your current income and employment details in the form of payslips and bank statements.
The bottom line
A new caravan is a major purchase, so if you need financial help to fund it, it’s definitely worth comparing what you’d pay using each of the options available. Whether you opt for in-store finance, or a personal loan, there are options for spreading the costs over an agreed period.
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