The short answer: most holiday lodges are bought with a deposit and a hire purchase agreement arranged through the park, or with money raised against the buyer's home. Lodge finance can work well, but it is not like buying a house. A lodge is a depreciating asset on land you do not own, held under a licence that eventually ends. This guide walks through the process step by step, including the parts park sales teams tend to skip.
Step 1: Decide whether this is a lifestyle purchase or an investment
Be honest about this first, because it shapes everything else. A lodge is a holiday home. In most cases it loses value over time, and the running costs are substantial. Bought as a lifestyle decision, it can be a very good one. Bought as an investment expecting rental income to cover the finance, it often disappoints.
Step 2: Set a budget that includes the running costs
The monthly finance payment is only part of the cost. Before choosing a lodge, budget for:
Site or pitch fees: typically £3,000 to £14,500 a year, depending on the park and location
Utilities: roughly £700 to £1,000 a year
Specialist insurance: from around £600 a year
Maintenance, service charges and annual gas and electrical safety checks
A transfer fee when you sell: some parks charge up to 15% of the sale price
Add these to the finance payment and test the total against your monthly income, with room to spare.
Step 3: Check the site licence before anything else
Every lodge sits on a park under a licence agreement that sets how long that unit may stay on site. Pre-owned lodges are usually sold with whatever remains of the original licence. Lenders will look at how long is left, and so should you.
The rule to follow: never take a finance term that runs longer than the remaining licence. If the licence ends before the agreement, you could be left owing money on a lodge that has to leave the park.
Also check the park's rules on how many months a year it is open, whether you can let the lodge, and whether the park has first refusal when you sell.
Step 4: Understand the funding routes
Hire purchase. A deposit, typically 10% to 20%, then fixed monthly payments, usually over seven to ten years. You own the lodge at the end. Often arranged through the park's own finance partner.
Finance with a balloon payment. Lower monthly payments, with a lump sum due at the end. Only sensible with a clear plan for the final payment, because refinancing a leisure asset is not always straightforward.
A secured loan or remortgage on your home. Often allows longer terms and lower rates, but your home is at risk if you cannot keep up repayments, not just the lodge.
Equity release. For buyers aged 55 or over. No monthly payments, but the interest rolls up and reduces the value of your estate. Specialist advice is essential.
Our lodge funding page compares these routes in more detail.
Step 5: Do not rely on rental income
Some parks offer letting schemes, and rental income can help with running costs. Most lenders, however, assess affordability on your own income, not on expected lettings. Bookings vary by season and year, and letting increases wear and tear. If the purchase only works with strong rental income, it may not be the right purchase.
Step 6: Prepare for the lender's checks
Lenders will look at your income and outgoings, your credit history, the size of your deposit, and the lodge itself: its age, specification, condition and remaining licence. You will normally need proof of identity and address, recent payslips or accounts, and bank statements. You must also have a main residence elsewhere, because a holiday lodge cannot be your permanent home.
Step 7: Compare the park's finance with alternatives
Park-arranged finance is convenient, and sometimes competitive. But it is not the only option. Before signing, compare the total amount payable, not just the monthly figure, with at least one alternative. Ask whether the park or its finance partner receives commission for arranging the finance; you are entitled to know.
Step 8: Read the agreements together
You will usually sign two separate agreements: the finance agreement and the park's licence or site agreement. Read them side by side. Check that the finance term fits within the licence, what happens to the finance if the park closes or changes hands, and what the park can charge when you sell.
Step 9: Plan your exit before you buy
Lodges depreciate. Losing 50% to 80% of the original price over the life of a lodge is not unusual. If you need to sell during the finance agreement, the sale price may be less than the amount you still owe, and the shortfall has to be paid before the lodge can be sold. Knowing this at the start helps you choose the right deposit and term.
Red flags to watch for
A finance term that runs past the end of the site licence
Pressure to sign on the day of a visit
Rental income presented as if it were guaranteed to cover the payments
Unclear site fees, or fees that rise without a stated basis
A balloon payment with no realistic plan to pay it
Frequently asked questions
Can I get a mortgage on a holiday lodge?
Usually not a conventional mortgage, because a lodge is not treated as property in the way a house is. Most buyers use hire purchase, a personal loan or borrowing secured on their home.
How much deposit do I need for a lodge?
Typically 10% to 20% for hire purchase, though it varies by lender, the lodge and your circumstances.
How long can I finance a lodge over?
Hire purchase terms are usually seven to ten years, and never longer than the remaining site licence should allow.
Can I live in my lodge full time?
Not on a holiday park. You will need a main residence elsewhere, and lenders will check this.
Will rental income count towards affordability?
Usually not. Most lenders assess affordability on your own income.
What happens if I want to sell before the finance ends?
The outstanding finance must be settled from the sale or from your own funds. If the lodge sells for less than you owe, you cover the difference.
Talk it through
If you are thinking about buying a lodge and want an honest view of how to fund it, speak to Pinks. We will look at the licence, the costs and the funding routes with you, including when the park's own finance is the best option.
Finance is subject to status and affordability. Think carefully before securing other debts against your home; your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Pinks Associates Limited is a credit broker, not a lender. Information correct as at November 2026.
