Do you use the equity in your home or an asset loan to finance your camper or caravan?

Have you got that camping bug? With cost of travel these days many families are opting for cheaper holidays around this beautiful country of ours. We recently just helped a client cash out on some equity in their home to purchase a camper to enjoy with their young family.  During the process we were able to move them to a lender with a lower rate and thus their repayments were only a small amount more than what they were paying on their home loan previously.

What sort of finance should you use to purchase a camper or caravan? It depends on your financial position. However, here are some points to consider:

Use Equity in Your Home

Pros

• Likely a lower interest rate
• Longer loan terms – therefore repayments will likely be far cheaper

Cons

• Eats into equity in your home
• If pay off over a longer period (e.g. 30 year loan term) you can end up paying more interest over a longer period.

 

Asset Finance

Pros

• Saves the equity in your home
• Shorter loan terms which means over the life of the loan you might be paying less interest.
• Usually a much faster more efficient process

Cons

• Usually a higher interest rate
• May not be available for older campers or caravans – although we can look at an unsecured option.
• Higher repayments

Naturally this could raise more questions for you.  If you would like more details on financing your camper or caravan Contact Us for a FREE no obligation discussion!