Important disclosure

Compare Caravan Loans in the UK

Holidays are coming up? It might be time to plan for a break with family or friends. Tour someplace you’ve never seen, or maybe settle a few days at the holiday park. Whatever your destination, your trip isn’t complete without the caravan you can stay cozy in.

If you’ve never had a caravan, there’s a first time for everything! You can buy one these days using a caravan loan. Whether it’s a touring caravan or a static caravan, financing is available. To know how much it might cost you monthly, use our caravan loan calculator here.

Terms from 1 to 10 years. Representative example: 5 year £10,000 loan with comparison rates from 2.8% to 49.9% APR would cost between £10,728 and £27,321, including fees. The interest can vary between £728 and £17,321.

About caravan finance

If you’re shopping for a caravan, it’s like buying a car. You can choose among any of the following popular financing options:

  • Personal loan – Buy the caravan with instant funds and repay your lender over an agreed term. There’s no minimum deposit needed, and you’ll own the caravan right away too.
  • Credit card – If your card has a high credit limit, it can partly fund your caravan purchase. Choose how much you repay monthly, as long as you cover the required minimum. You can also get payment protection, and potential savings on any 0% interest offers.
  • Secured loan – Borrow against security such as your home. Make sure you repay the loan in full, or the lender seizes the security.
  • Hire purchase (HP) – Pay a deposit, and then pay the rest of the price over an agreed term. The dealer will charge you interest while the loan is active. Furthermore, you’ll only own the caravan after completing a final balloon payment.
  • Personal contract purchase (PCP) – It’s similar to a HP, but more flexible. Once the loan ends, you can choose to return the caravan or own it. (That is, after settling the final balloon payment). You can also exchange it for another caravan, which becomes another new loan entirely.

Lenders may also offer you a static caravan loan using one of the above options. If you need help looking for a lender, visit our comparison table here.

Caravan finance features

Before taking out any loan, you have to be familiar with the loan terms. As a borrower, you can negotiate these with the lender according to your preferences and circumstances. This way, you can also get the most value out of your caravan loan. Keep in mind, though, that each lender offers different terms, so research is key.

Below are the common terms featured in caravan loans:

  • Loan amount: This is how much you’re borrowing to buy the caravan.
  • Deposit: For HP’s and PCP’s, you’ll need to pay part of the caravan’s price up front. On average, this is around 10% to 20%.
  • Loan term: This is how long you’ll have to pay off the loan.
  • Interest: This is the overall cost on the loan. Caravan loans interest rates may be higher for unsecured loans, and lower for secured loans.
  • Security: For secured loans, this is a standard requirement by the lender.
  • Repayment holidays: Some lenders offer breaks from the loan payments that can last 1 or 2 months. Usually, they’ll require consistent payments first up to a year before you can use the holiday. However, they’ll still charge you interest during the holiday itself.

 

Caravan loan calculator

Loan Amount

£20,000

Term

60 months

Admiral

Admiral Car Finance - Personal Contract Purchase (PCP)

EST Monthly Repayment
EST Monthly Repayment
7.63%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£1,000
to £25,000
Take control of your car finance with a representative of 7.9% APR
HSBC

HSBC Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View HSBC's website for more details on their car loans
Lending Works

Lending Works Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lending Works's website for more details on their car loans
Likely Loans

Likely Loans Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Likely Loans's website for more details on their car loans
Lloyds Bank

Lloyds Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Lloyds Bank's website for more details on their car loans
Marks & Spencer Bank

Marks & Spencer Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Marks & Spencer Bank's website for more details on their car loans
Metro Bank

Metro Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Metro Bank's website for more details on their car loans
NatWest

NatWest Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View NatWest's website for more details on their car loans
Nationwide

Nationwide Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Nationwide's website for more details on their car loans
Post Office Money

Post Office Money Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Post Office Money's website for more details on their car loans
RateSetter

RateSetter Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RateSetter's website for more details on their car loans
RBS

RBS Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View RBS's website for more details on their car loans
Sainsbury's Bank

Sainsbury's Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Sainsbury's Bank's website for more details on their car loans
Santander

Santander Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Santander's website for more details on their car loans
Tesco Bank

Tesco Bank Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Tesco Bank's website for more details on their car loans
TSB

TSB Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View TSB's website for more details on their car loans
Virgin Money

Virgin Money Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Virgin Money's website for more details on their car loans
Zopa

Zopa Car Loans

EST Monthly Repayment
EST Monthly Repayment
9.99%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£10,000
to £250,000
View Zopa's website for more details on their car loans
Carmoola

Car Hire Purchase

EST Monthly Repayment
EST Monthly Repayment
14.80%
APR
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£2,000
to £40,000
Carmoola's rates start as low as 6.9% for loans of between £2k - 40k over one to five years. Representative APR: 14.8%. Buy your dream car in minutes with Carmoola's virtual card, with a £0 minimum deposit. Carmoola is an entirely digital, app-based lender. No sales calls or paperwork! Take control and manage your loan in-app.

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Minimum and maximum loan periods vary between 1 month and 10 years. APR varies between 2.80% and 71.30% p.a. Total interest repayments vary between £435 and £1,019 over the life of the loan. *APR is based on an unsecured loan of R£15,000 for a term of 3 years. WARNING: This APR is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different APR. These rates can change without further notice. All rates quoted are per annum.

Considerations for caravan finance

Like most loans, a caravan loan is a serious financial commitment. You may want to take some time first to decide if you’re ready for it. But just in case you’re having trouble deciding, here are some points to think over:

  • How often will I use the caravan? This depends on how you spend your vacations. If neither holiday parks nor bringing a mobile home around is for you, that’s fine.
  • Do I need to prioritize other purchases? You might need to spend for an overdue car repair, or some new home improvements. Rank expected purchases by urgency, as you can probably buy the caravan later on.
  • Is the caravan brand-new or used? If you’re okay buying secondhand, then used caravans may cost much lower than new ones.
  • How is my credit score? If your credit score is currently poor, then now may not be the time to borrow. Try bringing up your credit score first to increase your chances of loan approval.
  • Can I pay off my other existing loans? Unless you have extra cash, you shouldn’t add to ongoing debt such as a mortgage. It’s better to pay off these other loans first so your finances have room to breathe. You can protect your credit score this way, too.
  • Will my income change over the next year or so? If you’re expecting additional income, this can support your caravan loan. On the other hand, you may experience a loss of existing income. In this case, it may be wise to hold off your caravan purchase first.

Caravan finance FAQs

Can I get a loan for a caravan?

Yes, of course! Our comparison table here shows you a list of lenders and the terms each can offer.

Is it hard to get financing for a caravan?

This largely depends on your credit score. With a high credit score, you can get easier approval for a caravan loan.

How long can you finance a caravan for?

Lenders usually offer a range between 1 year to 10 years. But take note that the longer the term, the higher the interest cost.

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