Residential parks are becoming an increasingly popular housing option in Scotland – especially with people in the over 50’s age bracket. Downsizing from a traditional bricks and mortar property to a park home can free up equity. This gives you more freedom to do the things you enjoy during retirement. When deciding whether moving is right for you, it’s important to consider your finance options. At the moment, it is not possible to get a mortgage on a park home, so you will need to explore other avenues.

Here we explore the various finance options available when purchasing a residential park home at Red Deer Village in Glasgow. We outline the benefits of outright purchase, part exchange and loans.

Outright Purchase

Purchasing the property outright is a popular option for people that have been planning for retirement. You can use savings or a pension to contribute to the cost of a park home, which is typically considerably cheaper than a traditional bricks and mortar property.

Alternatively, a cost-effective way to buy a residential park home is to free up the equity in your own home by selling. This is particularly beneficial if your mortgage is paid off, or you’re in positive equity (you can sell your home for more than you owe on your mortgage). When selling your home you should consider estate agency fees, conveyancing and early mortgage repayment fees if applicable.

Part Exchange Scheme

Those looking to take the stress out of home buying usually opt for part exchange. Part exchange allows you to move into your new residential park home much faster than waiting for a buyer to come along. Red Deer Village offer a competitive part exchange scheme, where all we require is a home report. The difference in park home and property values is paid to whichever party it is owed to, and you can move in straightaway. Super simple!

Loan

Another option to finance a park home is to take out a loan. As with any loan or mortgage, you want to look at long term affordability and shop around for the best rate. You can take out a personal loan, or approach a specialist park home finance company. There are only a small number of these in the UK, but they may be better equipped to give you guidance than a bank. Again, make sure you do your research. Only use a company that is regulated under the Financial Conduct Authority. Companies such as Best Park Home Finance and Pegasus Caravan Finance offer assistance when purchasing a residential park home. Some finance companies may even offer a combined insurance package. This can lower the premiums of both, rather than organising them separately.

Financing a park home

If you are considering purchasing a residential park home in Glasgow, please get in touch. One of our friendly team will be more than happy to discuss finance options and answer any other questions you may have.

Red Deer Village is an exclusive over 50’s village in Stepps on the outskirts of Glasgow. We have a selection of luxury park homes for sale, all set in our carefully landscaped grounds. Residents have access to our Residents Hub for events and get togethers. There’s also a courtesy shuttle bus that takes residents shopping twice a week.