Holiday park mortgage calculator
Estimate the deposit and monthly repayment on a holiday park or caravan park. Capital and interest, or interest only.
Your estimate
Illustrative only. Not a quote or an offer of finance.
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How the holiday park mortgage calculator works
The calculator takes the park value and your loan to value to work out the loan and the deposit. On capital and interest it then applies the standard amortising repayment formula, so the loan is fully repaid over the term. On interest only it charges interest on the full loan each month and leaves the loan outstanding at the end, to be cleared by sale or refinance.
The capital and interest monthly payment is the loan multiplied by the monthly rate, divided by one minus one plus the monthly rate to the power of minus the number of months. The monthly rate is the annual rate divided by twelve. Interest only is simply the loan multiplied by the annual rate, divided by twelve.
What drives the terms on a holiday park mortgage
A lender prices a holiday park mortgage on the trading business behind it. The EBITDA, the pitch-fee and site-fee income, the trading receipts from caravan and lodge sales, the length and security of the site licence and whether the tenure is freehold all feed into the loan and the rate. Loan to value, typically 50 to 65 percent, the quality and condition of the park and its location feed in too. Park mortgages are commercial finance, priced deal by deal, indicatively from the high single digits, and they move with the wider market. Use the calculator to model the deposit and the monthly cost, then send us the deal for a real view on terms.
Worked example
On a 450,000 pound park at 60 percent loan to value, the loan is 270,000 pounds and the deposit is 180,000 pounds. At 8.5 percent over 20 years on capital and interest, the monthly payment is roughly 2,340 pounds. On interest only at the same rate the monthly cost falls to about 1,910 pounds, with the 270,000 pound loan still outstanding at the end.
Holiday park mortgage calculator: common questions
How accurate is this holiday park mortgage calculator?
It gives a realistic illustration of the monthly repayment on a holiday park or caravan park mortgage from the value, loan to value, rate and term you enter. Real terms on a trading park depend on the EBITDA, the pitch-fee and trading income, the site licence and tenure, the loan to value and the lender. Park mortgages are commercial and priced deal by deal, indicatively from the high single digits, so treat the result as a guide rather than a quote.
What loan to value can I get on a holiday park?
Lenders typically advance 50 to 65 percent of the value on a holiday park or caravan park, because they lend on the trading business rather than on residential bricks and mortar. The deposit is usually 35 to 50 percent of the value. Strong EBITDA, a long secure site licence, freehold tenure and reliable pitch-fee income support the higher end. Set the loan to value in the calculator to model your own deposit.
Should I choose capital and interest or interest only?
Capital and interest repays the loan over the term, so the balance reaches zero and the monthly cost is higher. Interest only keeps the monthly cost down but leaves the full loan outstanding at the end, to be repaid by sale or refinance. Operators holding a park for the long term often amortise over 15 to 25 years, while those planning a refinance or sale sometimes prefer interest only. Toggle between them above to compare.
Want a real holiday park mortgage quote?
Send us the park and the latest trading accounts and we will come back with a view on fundability and likely terms within one working day.