Boat Finance

[yachtorion]

How possible it is to actually get a marine mortgage for a second hand yacht, assuming you have the 20% deposit?

Many people been accepted? Many been turned down?

I imagine in the current market higher value and secured marine mortgages may ironically be easier to come by than smaller unsecured loans?

 

[Nautorius]

How possible it is to actually get a marine mortgage for a second hand yacht, assuming you have the 20% deposit?

Many people been accepted? Many been turned down?

I imagine in the current market higher value and secured marine mortgages may ironically be easier to come by than smaller unsecured loans?

At the moment there are not many providers, Lombard and one French Company that I know of. They did not want to lend me less than £75,000 so that put minimum boat purchase at £100k. Under £25k you can get a standard loan but between £25k-£100k you may need to borrow against a house or find a seperate loan. This matches the boat market which seems quiet between £50k-£100k IMHO.

 

[Tranona]

Finance houses have fallen out of love with financing boats with a secured mortgage - many having been stung with unsellable boats 3 or 4 years ago. As suggested unsecured loans at the lower level are not too expensive if you have the credit record and raising additional funds against the security of a property is still possible.

 

[colind3782]

If you want a mortgage it will need to be Part 1 registered.

 

[Natterjack]

It may be different now, but last year we used Lombard for a marine finance.
We had a 24% deposit and borrowed a lot less then £75k! We didn't have to Part 1 Register either, which was a requirement from other lenders.
Mabe a higher deposit is needed?
At the time I actually wanted to borrow/spend a similar amount of money buying a bigger house, but couldn't get the mortgage! so we bought the yacht instead....

 

[jwilson]

It may be different now, but last year we used Lombard for a marine finance.
We had a 24% deposit and borrowed a lot less then £75k! We didn't have to Part 1 Register either, which was a requirement from other lenders.
Mabe a higher deposit is needed?
At the time I actually wanted to borrow/spend a similar amount of money buying a bigger house, but couldn't get the mortgage! so we bought the yacht instead....

As Tranona has said, marine mortgages are now few and far between, tend only to be for high value boats with a very substantial deposit and Part I registered. A few years ago it was much easier and for some boats no need for Part I. As an example in the mid 2000s one large bank was asking us (as brokers) to become an agent for their marine mortgage products (£25,0000 minimum loan, boat only had to be Part I if over £100,000). That bank has now completely pulled out of the marine mortgage market.

 

[yachtorion]

Thanks for the replies everyone. I had noticed there weren't many providers around. I spoke to Lombard at the London Boat Show in January and they said they are still very much open for business.... I guess I'll find out how open for business if I decide to go this route!