Any suggestions on how to finance a new motorhome?

[CustomBuild]

I wonder if anyone here has experience in using any form of home equity loan to purchase a new motorhome or if there are better options via other channels, excluding selling dealer finance?

One other question would be how quickly home equity or other kinds of loans could be arranged, does it takes days or weeks?

If anyone has any suggestions on brokers or agents that might be worth contacting I’d certainly appreciate it.

 

[VXman]

0% credit cards brings back many memories of the old days. There was a time we would jump card to card for the sign up incentives. A fun way to make some extra money if you could handle the mental stress of making sure everything was paid in full before any fees kicked in.

Not that difficult though. There are some very long term 0% deals out there. Whether it is useful for you or not depends on how big a credit limit will give you. Tesco and Virgin do 12 months 0% interest for cash advances. There is 4% fee so essentially you are borrowing at 4% APR.

All you need to do is make sure you have set up a direct debit for the minimum payment each month and put a reminder in your diary to pay it off in 12 months time.

Might be worth seeing if you can get a flexible or offset mortgage against your property so you can pay it off ASAP. Might struggle to set that up in 6-8 weeks though.

 

[BrochMike]

I guess I could consider mortgaging a house if there are lenders that would do that for a MH purchase.

I doubt you need to tell the bank what the funds are for, provided you have the equity in the property and meet their affordability criteria.

The bank will need a valuation survey and would place an interest on the property via Land registry. But shouldn't take very long to arrange.

Would this be against the property you are trying to sell? Might be slightly trickier, if so.

 

[CustomBuild]

Are you going to tell us which MH you've got your eye on?

Sure can do, it’s a Challenger 260 under contract since Caravan Salon 2024.

 

[Northernraider]

My folks taught me the same and sure enough they never had a single debt, at least that I was aware of.

I guess that’s why some people prefer to rent and never own a home, it keeps one debt free.

Is it my first motorhome? No, but it is very specific to our needs. I do agree with your logic though on buying an older model.

I've always bought my properties in the past I've never rented . But I never considered the mortgage a debt as such as again I lived within my means so my mortgage payments were always manageable.

I only ever bought 2 vehicles on finance ...5 year plans but ended up paying them off within the first year.

I've had debts in the past obviously but the bare minimum and now the only one I have is my credit card to keep some form of credit rating but its paid of in full each month. Surprisingly that has given me the best credit rating I've ever had lol. Not that I intend to use it.



Good luck anyway with your van purchase hopefully it all works out.

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[CustomBuild]

another PLUS for buying pre loved. there are some cracking bargains out there and if its your first motorhome, you get chance to try it out before committing heavily with finance, in case it just 'isn't you; ...

as an example, we bought a bought a sea going power cruiser, had it converted to freshwater, added some bits to get a Broads licence and and put it on the Norfolk Broads, we used it twice in two years, it just 'wasn't us' ......

theres always a few that come up on the classifieds that are worth considering, read the guide on buying second hand in the resources section ......

what layout and number of berths and belts are you looking for? you could even place an advert for what you want ,,,,

I like your boat story.

I have one too. I planned on getting a West Wight Potter for nearly fifteen years and finally picked up a brand new one at a deep discount from one of Mike Tyson’s bodyguards who had won it on a TV show. Another goal was to sail under the Golden Gate and out into the Pacific. Cutting to the chase, as I set out heading west that was the moment I absolutely knew it just wasn’t me. Listed for sale the next day.

 

[Otter Spotter]

Thanks Jim, I appreciate your advice.

Unfortunately for me, or maybe it’s fortunate for me, I don’t have a mortgage so I can’t consider an extension. It’s interesting to know that those products (mortgage extensions) exist though.

The dealer option is out because they are in Germany and don’t provide any options for non residents.

I’m totally onboard with borrowing as little as possible. Originally I was expecting to sell a house with plenty of time to spare but that has just fallen through so I kind of got derailed. I guess I could consider mortgaging a house if there are lenders that would do that for a MH purchase.

The factory delivery date was confirmed yesterday as week 20, so I have around 6 - 8 weeks to get myself sorted.

If only I had a crystal ball.

If you own a UK property that isn’t selling at present then you could consider a mortgage on it, any borrowing under £25,000 would be considered just as a ‘secured loan’ usually for up to 15 years, over £25,000 then it’s a full blown remortgage (interest rate potentially slightly cheaper than secured) and length of term could be as much as 35 yrs (don’t do that long). The longer the term the smaller the monthly repayments will be.
If you don’t have a property you can borrow against then bank loan would be more sensible, they will consider up to 10 years and the interest rate would be fixed.

 

[CustomBuild]

Are you over 55 with a private pension?
25% tax free sum?

Yes and no. I could make it yes and yes.

What is the 25% tax free?

 

[EuroTrotters]

My last car I purchased with a Personal Loan, simply for budgeting. The rate was 3% with nationwide . The Dealer was quoting 8.9%

 

[CustomBuild]

I'd definitely NOT go the equity release route without having exhausted every other option first.

Thanks for that. I have a feeling I misunderstood the term ‘equity release’.

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[CustomBuild]

I just searched the internet for the best loan deal, filled an online form in and got the money at a far better rate than the street banks. I financed my used van over 5 years, but paid it off in three without any penalty. Don’t stretch yourself, and understand that there will be other costs, and using the van isn’t free either.

Can you recommend any particular web sites for me to start off with or should I just start with a search and see what I find? I guess they come and go to a certain extent and the deals change regularly.

 

[MisterB]

Are you trying to buy in the UK or USA ..?

 

[CustomBuild]

Not in the way that you have a number attached to you. When you apply for credit a company will do a search on you and your financial history and from that will calculate a rating for you.

From google AI - "In the UK, the three main credit reference agencies (CRAs) are Experian, Equifax, and TransUnion, which collect and store information to create credit reports used by lenders and other service providers"

Thanks for that.

I’m guessing that I should be able to get a copy to see what they say about me. So that should be fun.

I’ll work on it later today.

 

[Dave Scadding]

Yes and no. I could make it yes and yes.

What is the 25% tax free?

The uk government allows you to take 25% of your pension pot as a tax free withdrawal.

 

[CustomBuild]

I have used Zopa loans successfully a few times but with a MH you need a lump.sum out to one side in case of repairs so that your expensive toy doesn't become a driveway ornament.

Thanks for the suggestion. I’ll check Zopa out later today.

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[CustomBuild]

Oh dear, that does explain the sudden need for cash. As it’s a brand new van that’s a hefty chunk. Presumably you’re still going to sell your house. I would have thought your best bet would be a loan at the lowest interest rate you can get but with monthly payments you can afford now ie over 3 or 5 or 7 years and then when your house sells just pay the loan off .You’ll seen forget the interest you’ve paid and that’s probably the quickest option with most flexibility.

Yes, it’s looking like a loan or possibly a mortgage could be a good option going by all the comments so far.

 

[CustomBuild]

The uk government allows you to take 25% of your pension pot as a tax free withdrawal.

Thanks for that info. I’ll take a closer look at how that might work out for us.

 

[Landy Andy]

Can you recommend any particular web sites for me to start off with or should I just start with a search and see what I find? I guess they come and go to a certain extent and the deals change regularly.

I used Zopa, but that was 10years ago. They all have different offers, but it couldn’t have been easier.

I also like the idea of keeping my finances separate. So I don’t want to fiddle with mortgage, or have loan attached to anything else.

 

[CustomBuild]

Tesco and Virgin do 12 months 0% interest for cash advances. There is 4% fee so essentially you are borrowing at 4% APR.

Might be worth seeing if you can get a flexible or offset mortgage against your property so you can pay it off ASAP. Might struggle to set that up in 6-8 weeks though.

Thanks for that info.

I’ve added to my list for later today.

 

[CustomBuild]

I doubt you need to tell the bank what the funds are for, provided you have the equity in the property and meet their affordability criteria.

The bank will need a valuation survey and would place an interest on the property via Land registry. But shouldn't take very long to arrange.

Would this be against the property you are trying to sell? Might be slightly trickier, if so.

If I go down the mortgage route I would most likely focus on another property to keep things nice and simple.

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[CustomBuild]

If you own a UK property that isn’t selling at present then you could consider a mortgage on it, any borrowing under £25,000 would be considered just as a ‘secured loan’ usually for up to 15 years, over £25,000 then it’s a full blown remortgage (interest rate potentially slightly cheaper than secured) and length of term could be as much as 35 yrs (don’t do that long). The longer the term the smaller the monthly repayments will be.
If you don’t have a property you can borrow against then bank loan would be more sensible, they will consider up to 10 years and the interest rate would be fixed.

That’s all good info, thanks.

I’ll dig in more on the secured loan versus a full blown mortgage and see how the numbers and time frames look.

 

[CustomBuild]

Are you trying to buy in the UK or USA ..?

I'm buying in Germany and registering in the UK.

 

[MisterB]

I'm buying in Germany and registering in the UK.

that comes with its own issues, so i cant offer any advice to be fair, though other funsters have imported vehicles from the EU into the UK (are you then having it shipped back to the US, just out of interest as opposed to being able to offer any info etc?)

 

[Bill-H]

There's a fair chance you'll find your first motorhome doesn't quite meet your needs once you've been away in it a few times - could do with a larger/smaller bathroom, garage access not quite big enough, that double bed in a corner is a pain when you need to get up in the middle of the night and climb over a sleeping partner, you should have bought left-hand drive as you spend most of your time in Europe.
There will likely be many more things you'd alter or have as essential when you've got used to having one.
The advise by many contributers to this thread is to buy a used one first and that's what I'd recomend as well. Your second one may be very different to the one you first think is right for you, you'll lose less money buying and selling a used one first.

 

[CustomBuild]

that comes with its own issues, so i cant offer any advice to be fair, though other funsters have imported vehicles from the EU into the UK (are you then having it shipped back to the US, just out of interest as opposed to being able to offer any info etc?)

It sounds like you are right on the issues of importing and I’ve been closely following all comments on that subject for some time now. Last time I imported a car it was very simple, quick and easy, but that was many years ago.

I’m not sure why you might think I would want to ship the MH to the US?

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[MisterB]

It sounds like you are right on the issues of importing and I’ve been closely following all comments on that subject for some time now. Last time I imported a car it was very simple, quick and easy, but that was many years ago.

I’m not sure why you might think I would want to ship the MH to the US?

Only because your location flag is showing in the US ...?.or does it not actually mean anything?

 

[CustomBuild]

There's a fair chance you'll find your first motorhome doesn't quite meet your needs once you've been away in it a few times - could do with a larger/smaller bathroom, garage access not quite big enough, that double bed in a corner is a pain when you need to get up in the middle of the night and climb over a sleeping partner, you should have bought left-hand drive as you spend most of your time in Europe.
There will likely be many more things you'd alter or have as essential when you've got used to having one.
The advise by many contributers to this thread is to buy a used one first and that's what I'd recomend as well. Your second one may be very different to the one you first think is right for you, you'll lose less money buying and selling a used one first.

Your advice certainly sounds very solid and it is what I would also recommend for anyone considering a first motorhome.

 

[CustomBuild]

Only because your location flag is showing in the US ...?.or does it not actually mean anything?

I believe the flags are always displayed based on the detected IP address.

Just for a smile I might try login next time via TOR and see where in the world I am

 

[CustomBuild]

I believe the flags are always displayed based on the detected IP address.

Just for a smile I might try login next time via TOR and see where in the world I am

Hey, I'm in Germany now. That was fast.