finance

[lustyd]

Anyone know of a marine finance place who can provide loans under £30k? Just contacted Lombard and was told I need to look at bigger boats

My bank are currently wanting 20% interest (8.9% Representitive, although on inspection "representitive" is a made up word) which rules them out

 

[Sailfree]

Anyone know of a marine finance place who can provide loans under £30k? Just contacted Lombard and was told I need to look at bigger boats

My bank are currently wanting 20% interest (8.9% Representitive, although on inspection "representitive" is a made up word) which rules them out

Have you thought about increasing the house mortgage. Just make sure you are allowed to make additional payments. Some restrict the total amount of additional payments.

Try some of the money websites but I think the majority will be getting on for 10%.

Is the boat worth a bigger loan? I took out initial large loans with Lombard but knocked them down quickly with lump sums eg 17.5% VAT repaid once refunded by Customs & Excise.

Bigger loans also attract lower interest rate. I managed 2% over LIBOR but don't think thats available these days!!

 

[RupertW]

We went for a personal unsecured loan after a lot of discussion with Lombards about a marine mortgage - just too much hassle, especially getting full registration and 2k legal fees.

I'm sure there are much better loan rates around than the interest rate you have been quoted if you look on the net and make absolutely sure they are not connected to a bank or insurance company where you are already a customer. Remember best deals are always for "Brand new customers only"

 

[Sailfree]

We went for a personal unsecured loan after a lot of discussion with Lombards about a marine mortgage - just too much hassle, especially getting full registration and 2k legal fees.

Yes forgot that we had to have Part 1 registration with finance co interest logged on ships registration. For this you need a Tunnage survey which a surveyor has to individually carry out for each individual boat - can't use figures from an identical already registered boat - seemed a right con to me.

 

[lustyd]

Thanks for the replies guys. I don't have a house so can't increase the mortgage (and from what I've seen those with a house can't either for the most part!).
The idea of shopping around for loans makes me want to cry. The 10% you have seen will be "representitive" as well. This means that, although it's possible that you might get this rate, you'll probably get double that because it's a sliding and somewhat random scale that is used.

I must admit I hadn't realised there would be £2k legal fees - was that due to the size of the loan?

The other issue I have is that I've found what I think for me is the perfect boat which is too cheap. I can't offer more because the survey will value the boat

Oh well, keeping the little boat is always an option!

 

[SailorBill]

I think I saw Sainsbury's offering personal loans up to 15K @ 5.9% ? One loan each for you and the Mrs if you have one?

You could always save up for it!

 

[Sailfree]

I must admit I hadn't realised there would be £2k legal fees - was that due to the size of the loan?

!

IIRC its not legal fees but mostly Part 1 registration. This is like a land register where the lender can register their financial interest in the boat. In 2005 this cost me £938 for a 43'boat (included Tunnage survey!). In addition there was probably a small admin/legal charge from Lombard for the agreement.

 

[Tranona]

Yes, your best bet is a personal unsecured loan, assuming you have the credit profile to support it.

Boats are lousy security which is why banks are not interested. Their value is unpredictable and can be very difficult to sell. The costs of registering their security are high. That is why they only deal with large value boats and will limit their exposure to only a low proportion of the cost of the boat.

Experience in the recent past where banks have ended up owning lots of boats has been a further disincentive to lending against them.

 

[gjgm]

Yes, your best bet is a personal unsecured loan, assuming you have the credit profile to support it.

QUOTE]
And you might need a house. to support it...

 

[Tranona]

Yes, your best bet is a personal unsecured loan, assuming you have the credit profile to support it.

QUOTE]
And you might need a house. to support it...

Then it is secured, not unsecured if you are using the house as security. Just owning a house, though with some equity can improve your credit rating making a personal, unsecured, loan more likely.

 

[harstonwood]

Yes forgot that we had to have Part 1 registration with finance co interest logged on ships registration. For this you need a Tunnage survey which a surveyor has to individually carry out for each individual boat - can't use figures from an identical already registered boat - seemed a right con to me.

There is no requirement to be Part 1 registered, if the loan is less than 100K

 

[Sailfree]

There is no requirement to be Part 1 registered, if the loan is less than 100K

Depends on the company. I have had three marine morgages and certainly 2 of them were less than £100k and it was a requirement to be part 1 registered. First one was in 1998 so perhaps limits have increased with inflation but perhaps not for all companies.

 

[ripvan1]

Tesco bank like Sainsbury has low interest rate based on being home owner

 

[PhillM]

If you want a bigger, more expensive boat but dont have the finance, why not look for a older, run down one, get it at a knock down price and then do it up.

If you save up what you would be paying on installments and do the jobs one at a time, you can get it into the boat you really want quite quickly.

I'm not talking about a major project, but perhaps the boat you want, but with tired sales and rigging and perhaps an old engine. Look for one that it still usable but that you could work on a bit at a time to make your idea of
perfect.

Looking at a £30K loan you are going to be paying +£500 pm - so two months gets you a genoa, 3-4 a new main, 2-3 new standing rigging, 12 a new engine and so on.


Oh and having somthing to do over the winter is also fun. Not sure what I will do with myself when Paean is finished - although I don't ever think she will be

 

[lustyd]

If you want a bigger, more expensive boat but dont have the finance, why not look for a older, run down one, get it at a knock down price and then do it up.

If you save up what you would be paying on installments and do the jobs one at a time, you can get it into the boat you really want quite quickly.

I'm not talking about a major project, but perhaps the boat you want, but with tired sales and rigging and perhaps an old engine. Look for one that it still usable but that you could work on a bit at a time to make your idea of
perfect.

Looking at a £30K loan you are going to be paying +£500 pm - so two months gets you a genoa, 3-4 a new main, 2-3 new standing rigging, 12 a new engine and so on.


Oh and having somthing to do over the winter is also fun. Not sure what I will do with myself when Paean is finished - although I don't ever think she will be

Did that with current boat, and it's not worth the money in the long run. It's almost impossible to add value to a boat, so the finance route actually is better in the long run because you'll get the money back from a newer boat that doesn't need work done.
The problem isn't that I can't get finance by the way - Lombard seemed to be up for that. The problem is they would have to lend me £5k more than I need and that's more than the boat I want

 

[savageseadog]

If you want a bigger, more expensive boat but dont have the finance, why not look for a older, run down one, get it at a knock down price and then do it up.

If you save up what you would be paying on installments and do the jobs one at a time, you can get it into the boat you really want quite quickly.

I'm not talking about a major project, but perhaps the boat you want, but with tired sales and rigging and perhaps an old engine. Look for one that it still usable but that you could work on a bit at a time to make your idea of
perfect.

Looking at a £30K loan you are going to be paying +£500 pm - so two months gets you a genoa, 3-4 a new main, 2-3 new standing rigging, 12 a new engine and so on.


Oh and having somthing to do over the winter is also fun. Not sure what I will do with myself when Paean is finished - although I don't ever think she will be

I agree with this. I had a marine mortgage once and looking back at what it cost me isn't happy reading. Given that even a new boat will need work, care and attention I would look at something with a decent hull and fit out but needing electrical/rigging/engine work.

 

[Plevier]

Have you looked at ZOPA for a loan?
http://uk.zopa.com/borrowing/borrowing-at-zopa

 

[Tranona]

The problem isn't that I can't get finance by the way - Lombard seemed to be up for that. The problem is they would have to lend me £5k more than I need and that's more than the boat I want

Don't see why that is a barrier. You don't have to spend all the money and if the interest on an extra £5k is a deal breaker maybe it is too marginal anyway.

 

[sailorman]

Don't see why that is a barrier. You don't have to spend all the money and if the interest on an extra £5k is a deal breaker maybe it is too marginal anyway.

put the £5k in a cash isa

 

[lustyd]

Don't see why that is a barrier. You don't have to spend all the money and if the interest on an extra £5k is a deal breaker maybe it is too marginal anyway.

It's a barrier because the boat is worth less than the loan amount. The survey would show this and they would therefore not lend me the money. The interest doesn't bother me (although 20% with the bank does!). If the boat was worth £30k then I'd go for it in a heartbeat!