Buying a static caravan outright, in one payment, is rare. Most buyers spread the cost, and the market offers two genuinely different routes rather than one.
Can you get static caravan finance?
Yes. Static caravans are not mortgageable the way houses are, since they are not registered as land, but a specialist finance market exists to cover that gap. You will usually arrange it through the park's chosen finance partner or through an independent broker, regulated under the Consumer Credit Act 1974 the same way a car loan or credit card is.
Your two real options
Unsecured caravan finance – a broker introduces you to a lender who finances the caravan itself, no deposit, typically £5,000 to £100,000 borrowed over one to fifteen years. Rates commonly start from around 7-9% APR headline, with representative APRs closer to 11-12% once your credit profile is factored in. The catch: you do not legally own the caravan until the agreement is paid off in full. Miss payments and the finance company can repossess it.
Secured homeowner loans – if you own your home or have enough equity in it, you can borrow against that instead, sometimes from around 6.5% APR. You own the caravan outright from day one, because the debt sits against your house, not the van. The trade-off: if you cannot keep up payments, your home is what's at risk, not a holiday purchase.
| Unsecured caravan finance | Secured homeowner loan | |
|---|---|---|
| Typical rate | from +7-9% APR | from +6.5% APR |
| Deposit | usually none | none, but needs home equity |
| Who owns the caravan meanwhile | the finance company | you, from day one |
| What's at risk if you default | the caravan | your home |
| Who qualifies | most applicants, credit-checked | homeowners only |
A word on commission – what changed in 2025
In August 2025 the Supreme Court ruled on motor finance cases where dealers earned commission from lenders without properly disclosing it. The Court found this kind of arrangement can make a credit agreement an 'unfair relationship' under section 140 of the Consumer Credit Act 1974, a protection that applies to consumer credit generally, not just car finance. Static caravan finance is arranged the same way – your broker or the park's finance partner earns commission from whichever lender you're placed with. Ask directly what commission is being paid and by whom before signing. You're entitled to know, and if you're not told, that omission may now count against the lender if you ever need to dispute the agreement.
Do you pay VAT on a static caravan?
This is the part most guides leave vague, so here's the actual rule, from HMRC's VAT Notice 701/20. Under 7 metres long or 2.55 metres wide: standard-rated at 20%. Over those dimensions and built to BS3632 (2005 version or later): zero-rated. Over those dimensions but not built to BS3632: reduced-rated at 5%. Second-hand and occupied before 6 April 2013: zero-rated regardless of size or build standard. Most park-sited holiday caravans sold new today are built to BS3632 and sized over the threshold, which is why many buyers pay no VAT at all, but it isn't automatic. Confirm your specific model's build standard and dimensions with the park before assuming either way.
Your rights when financing a static caravan
Because caravan finance is regulated under the Consumer Credit Act, you get the same core protections as any other regulated credit agreement: a statutory cooling-off period after signing, a right to settle early with interest recalculated fairly, and access to the Financial Ombudsman Service if a dispute can't be resolved directly. If your finance company is only acting as a broker rather than the lender, as many caravan finance firms are, check who you're actually contracting with before you sign.
Should you finance or save up?
Both are legitimate. Financing gets you into a holiday home sooner and spreads the cost, at the price of interest on top. Saving and buying outright costs nothing extra in interest, at the price of waiting. Neither is the objectively right answer, it depends how much you value the caravan now against what the interest costs you over the term. If you're unsure, an hour with an independent financial adviser before you sign is worth it.
Before committing to a specific park or model, it's worth reading our guide to 35 Questions to Ask Before Buying a Static Caravan and checking how much a static caravan actually costs in 2026 first, so you know the real number you're financing.