Boat mortgage recommendations ?

S

Shakemeister

Well-Known Member
Joined
31 Jan 2013
Messages
211
Visit site
Hiya,

Can anyone recommend any decent finance companies for boat mortgages? Also what might be required in terms of deposit and length of mortgage? What's a typical interest rate for this kind of finance?

Also, what's the major differences between a boat mortgage and a normal loan off a bank?

Many thanks.
 
Shakemeister said:
Hiya,

Can anyone recommend any decent finance companies for boat mortgages? Also what might be required in terms of deposit and length of mortgage? What's a typical interest rate for this kind of finance?

Also, what's the major differences between a boat mortgage and a normal loan off a bank?

Many thanks.
Click to expand...

Well I havent ever done this but I believe about the only people left in the market are Lombard. I spoke to a nice woman at the LIBS who told me the loan would be secured on the boat. I cant remember what the minimum was. I asked her about a 100k loan on a 150k boat and the interest rate was only 5% I think. So give them a call. I have used them for asset finance and car finance for my business and they are very good, even if they are part of RBS!!
 
We bought our boat new in 2009 with a Lombard marine mortgage. The application was pretty straightforward although the vessel will need to be Part 1 registered and a law firm involved in the registration process as a requirement of the loan. Not too expensive though as I recall. The interest rate is 3% above LIBOR which at the moment is circa 0.55%, so the loan rate is under 4% and has remained virtually constant since 2009. We borrowed 75% of the price as new, including all the bits added eg electronics. It's a repayment loan, so gradually reducing over a 15 yr term. You can pay off some or all of the loan early. I have no connection with Lombard other than as a satisfied customer.

Call them on 02380 242 171
 
We bought in 2010 and were planning a marine mortgage but found the legal fees and Part 1 registration arrangements so painful that we checked bank loan rates and got a very similar rate with none of the hassle.
 
Could not afford to buy a new boat with a loan, so I paid cash for it
i think one needs to be very confident to tie oneself up for years paying off a loan
plus you have to be wealthier as you have to pay the interest on top of the cost of the boat
 
Still only half way through paying for my house.

I bough a 30 year old boat so I would not have a loan on it.
Probably would have been wiser to pay for the house
 
Thank you everyone for your replies. I'm not looking at a brand new boat, but a second/third/fourth hand one.

The lenders I've browsed seem to want 30% deposit - the boats I'm looking at are not superyachts but this is a considerable chunk of money out of the money put to one side for repair/renovation and purchase of new safety kit.

Also looking at moorings not marina to keep costs down.
 
I have literally just paid off our mortgage over 4 years early. It was a 7 year deal through CGI Finance (their agent is in Lymington) which is a French company. Back in 2011 they offered me 2 options, 10 years straight repayment or 7 years with a Balloon. I made 2 large repayments to release the vessel from the morgage and found them helpful and prompt.
 
Shakemeister said:
Thank you everyone for your replies. I'm not looking at a brand new boat, but a second/third/fourth hand one.

The lenders I've browsed seem to want 30% deposit - the boats I'm looking at are not superyachts but this is a considerable chunk of money out of the money put to one side for repair/renovation and purchase of new safety kit.

Also looking at moorings not marina to keep costs down.
Click to expand...
You are unlikely to find anybody that will lend secured finance on a used boat unless it is high value and the loan is a small proportion of the purchase price. Boats are poor security, particularly in today's slow market and the banks that used to lend have just gone through a painful few years of trying to offload repossessed boats.

As suggested, the alternatives are borrowing against the equity of your house if you can or raising an unsecured loan based on your ability to pay the interest and repay the capital.
 
You must log in or register to reply here.

Share this page

Top