What offering customer finance really means on a park

Offering finance means giving buyers a clear, regulated way to spread the cost of a park home when a traditional residential mortgage is not available. In the UK, park homes are typically treated as personal property rather than real estate, so funding is usually arranged through specialist park home lenders, secured or unsecured loans, or short-term solutions such as bridging. For your business, finance is not about “discounting” the home; it is about packaging affordability, helping customers choose a home that fits their budget, and reducing fall-throughs when cash is tied up in a sale chain.

Standout point: When customers understand the finance options early, they shop with confidence and commit faster.

Why buyers lean on finance in this market

Many park home customers are downsizers or retirees who may be asset-rich but cash-light at the point of purchase. Equity can be locked in a bricks-and-mortar property sale, and timing rarely aligns neatly with reserving a new home. Others prefer to preserve savings for lifestyle, renovations, or contingency rather than paying in full. Because park home lending is structured differently from mortgages, buyers also want guidance on deposits, terms, and what a realistic monthly payment looks like. The most reassuring approach is calm transparency: explain that APRs are typically higher than mortgages, then show the total cost and options side by side.

How finance helps you sell more homes

Finance can increase sales by widening the pool of customers who can afford your stock today, not just those with immediate cash. It also reduces friction: a buyer who can secure a decision in principle is less likely to delay, renegotiate, or drop out. For higher-ticket models, spreading payments can make upgrades feel achievable without pressuring the customer. Finance also supports part-exchange and bridging approaches, which are common where a buyer is selling a property and wants to avoid missing a preferred plot or build slot. The commercial benefit is straightforward: higher conversion, steadier pipeline, and fewer stalled reservations.

Short, standout line: Affordability sells, and clarity sells faster.

Typical park home transaction values (and how finance tends to be structured)

What you can finance (examples customers recognise)

1. New residential park homes (fully sited)

2. Pre-owned residential park homes

3. Holiday lodges and holiday homes (where permitted)

4. Upgrades and extras (decking, skirting, landscaping, furnishings)

5. Delivery, siting and commissioning costs (where structured appropriately)

6. Part-exchange shortfall (top-up lending where suitable)

The FCA and compliance basics you cannot ignore

Because finance is regulated, your sales process must be clear, fair and not misleading. Customers should understand that park home finance is not a mortgage, that APRs can be higher, and that credit is subject to status and affordability checks. Any advertising must present representative examples where required and avoid implying guaranteed acceptance. Staff should not present themselves as giving independent financial advice unless appropriately authorised, and customers should be signposted to terms, total cost of credit, and the right to consider alternatives.

How introducer and broker models fit together

Most park operators do not want to become a lender, and they do not need to. In an introducer model, your team identifies that a customer wants to pay monthly and then introduces them to a regulated broker who can source suitable options from specialist lenders. The broker collects the right information, supports the application, and helps the customer compare finance structures such as deposit levels, term length, and whether the loan is secured against the home or unsecured. This keeps your process compliant and efficient: you stay focused on selling homes and delivering a good customer experience, while the broker handles lender relationships and underwriting requirements.

Practical takeaway: Your role is to set expectations early and introduce a safe route to finance, not to “sell” credit.

What a good customer journey looks like (step by step)

1. Raise finance early: As soon as a customer discusses budget, explain that park homes are usually financed via specialist loans rather than traditional mortgages.

2. Confirm the use type: Establish whether the home is residential or holiday use, as this can affect lender appetite and loan-to-value.

3. Share an affordability steer: Discuss deposit expectations (often 10% to 20%), likely term ranges (up to around 15 years), and the fact APRs are typically higher than mortgages.

4. Introduce the broker: With consent, pass the customer to Kandoo to explore options and collect initial details.

5. Decision and documentation: The broker supports the application, provides a quote, and ensures the customer sees the total cost of credit and key terms.

6. Reservation alignment: Match the finance timeline to your reservation and build schedule, reducing the risk of avoidable delays.

7. Completion and aftercare: Keep communication clear on completion dates, any extras being financed, and next steps if the customer wants to overpay or settle early.

Next-step suggestions you can implement this week

• Add a “How park home finance works” page to your website with a simple cost example and a clear call to action.

• Train your sales team on three phrases: chattel not mortgage, subject to status, and total cost of credit.

• Use a finance prompt in every enquiry form: “Would you like to explore monthly payment options?”

Getting set up with Kandoo (without disrupting sales)

Kandoo helps UK park operators offer finance in a way that feels straightforward for customers and controlled for your team. We start by understanding your stock profile, average ticket values, and whether you sell residential homes, holiday units, or both, then align the introduction process to your current sales flow. You will have a clear way to refer interested buyers for quotes, supported by compliant messaging that sets the right expectations around deposits, terms, and APR. The outcome is a calmer buying journey: customers can compare options, you can protect your pipeline, and your team can focus on helping buyers choose the right home rather than chasing funding.

FAQs

Can a buyer get a standard mortgage for a park home?

In most cases, no. Park homes are typically treated as personal property rather than real estate, so buyers usually use specialist park home loans, personal loans, or other tailored finance options.

What deposit do customers usually need?

Many lenders work with deposits around 10% to 20%, depending on the customer, the home, and whether it is residential or holiday use. Some no-deposit options exist, but they are subject to stricter checks.

How much can customers typically borrow?

It is common to see lending up to around 70% to 80% of the home’s value, with some products offering higher loan-to-value in specific circumstances. The exact figure depends on affordability and lender criteria.

Are park home loans regulated in the UK?

Yes, many specialist providers and brokers operating in this space are regulated by the Financial Conduct Authority. That is why the sales journey needs clear, compliant communication.

Is there an upper age limit for applicants?

Some specialist park home lenders state there is no upper age cap, and flexible terms can suit retirees. Each application is still assessed on affordability and individual circumstances.

What terms are available?

Terms can range from short periods (useful for bridging) up to around 15 years for longer-term borrowing. Many customers value the option to make additional repayments, depending on the product.

Why are APRs higher than residential mortgages?

Because the security and tenure differ from bricks-and-mortar property. The key is to compare offers on total cost of credit and monthly payment, not headline rates alone.

Can finance be used for part-exchange or while a buyer sells their house?

Often, yes. Bridging and part-exchange structures are common in this market and can reduce timing pressure for downsizers, subject to status and the lender’s criteria.

Do we need to become FCA authorised to offer finance?

Not necessarily. Many park operators use an introducer approach, where you refer customers to a regulated broker who arranges the finance and ensures the right disclosures and process are followed.

How do we explain finance without overwhelming customers?

Keep it practical: explain that it is not a mortgage, outline typical deposit and term expectations, and offer a simple quote route. Customers mainly want clarity on what they will pay in real terms.