Call0800 066 2882

Spread The Cost

Calculate My Loan
Monthly Payment £0
Total Repayable £0
(8.9% APR illustration)
Apply Now
This does not constitute a quote, rates may vary depending on personal circumstances.

Differences: Mobile Home vs Motorhome Financing

November 9, 2023

Differences: Mobile Home vs Motorhome Financing

Exploring the world of leisure and mobile living brings with it various choices when it comes to financing. It’s important for those looking to buy, to investigate the key differences in financing a mobile home compared to a motorhome. This guide aims to shed light on these differences, helping you make well-informed choices.

Understanding Mobile Home and Motorhome Financing

When it comes to financing a mobile home or a motorhome, the processes, lenders, and rules involved are quite distinct. Although both offer the charm of a movable or transportable home, the financial solutions available differ greatly due to their unique characteristics and intended uses.

Distinguishing Between Mobile Homes and Motorhomes

Mobile homes, also known as manufactured homes, are usually set up in one place for long periods or even permanently. They are treated in some ways as bricks and mortar houses. In contrast, motorhomes are recreational vehicles meant for regular travel and are categorised as personal belongings.

Finance Options for Mobile Homes

Financing for mobile homes is limited. Due to the nature of the building and the site it sits on, obtaining the right finance agreement is a specialised subject. A traditional mortgage isn’t typically an option for a mobile home.

Finance Options for Motorhomes

Financing for motorhomes is more akin to car loans than to home mortgages. This means you have more options available which can be also be more flexible. Here at Pegasus Finance, we work with a panel of lenders who specialise in motorhome finance. This means rather than a traditional car loan, we can access better deals. These include longer terms, in certain cases up to 15 years.

Interest Rates: Mobile Homes vs. Motorhomes

The interest rates for mobile home loans can be comparable to those of mortgages, but they tend to be higher due to perceived increased risks. It’s very dependent on the mobile home and where it’s located, as well as personal circumstances. The rates for motorhome loans can vary significantly, depending on the lender and your credit score.

Loan Terms and Repayment: A Comparison

Loan durations for mobile homes can go up to 30 years. Motorhome loans, however, usually have shorter durations, typically between 10 and 15 years, influenced by the loan amount and your preferences. Other influencing factors include the age of the motorhome and your unique circumstances.

Credit Score Requirements

For mobile home financing, lenders usually look for good to excellent Credit scores. Motorhome financing is somewhat more lenient, but a better credit score can secure more favourable interest rates.

Deposit Requirements

Deposits for mobile homes are generally in the range of 5% to 20%. Motorhome financing, however, may require down payments of 10% to 30%, depending on the lender and the motorhome’s cost. At Pegasus Finance, options for £0 deposit finance are available.

Insurance Needs

Insurance for mobile homes is similar to home insurance, whereas motorhome insurance blends aspects of both vehicle and home insurance. It’s important to consider all insurance needs when budgeting, not forgetting the contents in a mobile home or motorhome. If in doubt, always check with your insurance provider to know what is covered, and what isn’t covered.

Pros and Cons: Mobile Home vs. Motorhome Finance

Deciding between a mobile home and a motorhome involves considering your lifestyle preferences, financial implications, and long-term objectives. Financing a mobile home is more like buying  property. On the other hand, motorhome financing is more adaptable but it’s important to remember that a motorhome is a depreciating asset.

For those leaning towards a motorhome, it’s crucial to understand the Basics of Motorhome Financing. Tools like Affordability Calculators for motorhome financing can be very useful. It’s also important to be aware of the Reasons For Rising Motorhome Prices and to consider if a motorhome is a suitable Investment for your lifestyle.

Choosing the Right Motorhome Model is key, and guidance on selecting the appropriate motorhome model can be helpful. If you’re curious about how motorhomes are constructed, exploring Inside Motorhome Manufacturing can be enlightening. Ensuring you have the right Insurance is vital, and looking into top motorhome insurance providers will be beneficial. Finally, understanding the Role of Motorhome Brokers & Dealers can simplify the buying process.

In summary, while financing for both mobile and motorhomes has its unique features and challenges, thorough research and a clear understanding of each option will help you make a decision that aligns with your financial situation and lifestyle goals.


Motorhome Financing Guide

Motorhome Financing Guide

Thinking about motorhome finance? Apply online for a free, fast, no-obligation quote HERE.

About The Author