A motor home loan is basically like any other loan where you have any kind of collateral whatsoever. The motorhome stands as collateral for the loan, which means that the interest rate will be much longer than for a loan without collateral.
What are the conditions for a mobile home loan?
As with all loans, there are slightly different terms that it is important to keep in mind. Here you can read some of the more basic and more important ones. However, make sure you always read through all the terms that the bank has for the motor home loan. If you have done that, you know exactly what happens in different situations.
How much does security have?
It is not possible to take a motorhome loan for the entire sum where the motorhome stands as collateral. Instead, you can only borrow up to about 80% of the value with the camper as collateral. This is so that the bank can feel secure in getting the money back if the motor home has to be sold to cover the loan.
The remaining 20% you have to finance in some other way. This can be, for example, through an exchange or a cash deposit of saved money. If you do not have access to this, you can also apply for a regular private loan or similar to cover these 20%.
How long can a motor home loan be?
You have quite a lot of freedom to choose how long you want your motorhome loan to be. Usually, the bank can choose its own length within the limits set by the bank. This limit is usually around 2 – 15 years. Benefits come with both short and long payback times.
If you choose a short motorhome loan, the payments each month will be quite large, unlike a long loan where the monthly payments will be much lower. All in all, however, it is clearly cheaper with a short loan as you do not pay as much at interest. So let your finances decide how long the motor home loan should be.
You should be aware that the banks do not gladly lend you money if you do not buy from an authorized motorhome dealer. If you want to buy it privately, you can simply count on not being able to take out a loan with your camper as collateral. Instead, you get to think about other types of loans such as private loans.
Where to find motorhome loans?
It is not immediately common for banks to have loans called exact motor home loans. It is really only the biggest banks that have loans with this name at all. However, there may still be loans where motorhomes and caravans are included only to call them something else. So if you do not find the word motor home loan directly, do not despair, but it can still only be found under another name. For example, it can be called a leisure loan.