Marine Finance

Re: Knock, knock

Spot on gjgm. A modest amount of inflation to reduce the discounted value of future payments on loans is what makes the economy tick
 
Re: Knock, knock

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What's wasted? Your argument is financially illiterate. Interest is no more and no less than the cost of renting someone else's money.

[/ QUOTE ]Naah, that's just a technical definition - sort of. There's much more than that behind the leveraged lifestyle that has brought us where we are.
Defining "wasted" a pound of flesh given to the banks is possibly a "financially illiterate argument". But you might as well take the financial part out of it, and call it a highly literate viewpoint.
 
Think we're losing the thread a bit. If I could borrow at the same rate as a domestic mortgage I'd be getting 3% and not the 4.7% over base quoted. The term of the finance is actually variable and doesn't need to be 25yrs, indeed as I'm knocking on a bit I'll be going for much less.
Appreciate all the thoughts, keep 'em coming particularly if you know of a good rate anywhere or a different scheme to a marine mortgage.
Cheers m'dears.
 
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I'm knocking on a bit
a different scheme to a marine mortgage.


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Equity release scheme is ideal for you.
Forget the Financial advisor's route, here's the budget approach that will no doubt be met with equal enthusiasm as the DAKA buy a boat scheme, but here goes

Sell your house.
Get your name on a council list

Derbyshire have some lovely bungalows available to older folk only, as Derbyshire is hilly there are always bungalows at the top of hills that no one wants, a 3 year waiting list soon becomes 6 months.
 
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Think we're losing the thread a bit.

[/ QUOTE ]Guilty as charged. Sorry, I couldn't resist.
Oh, and I'm afraid I don't have any suggestion re. good rates or different schemes, either.
Actually, I'd rather beware of both, these days.
"Read the small prints!" is the best advice I can give... /forums/images/graemlins/smile.gif
 
If you have enough equity in your house then an offset mortgage or an all in one account like Natwest One is a good alternative. Rate is comparable with a standard mortgage but it is much more flexible, allowing you to vary payments and use savings income (when there is any!) to offset interest charges. No penalties on early repayments. I used one to replace the interest only mortgage I took out to buy my boat, and now I have paid it off, I still have what is effectively a large overdraft facility at a low rate (currently 3.9%) if I need it. Still needs the discipline of not overspending on it above what you can afford to service and eventually repay. Would not touch a conventional marine mortgage on a depreciating and illiquid asset such as a boat in these uncertain times. On the other hand if I had spare cash I might be tempted into the market!
 
Problem with offset accounts is that there is usually a 25k limit on borrowing. if you can buy the boat for that its a good suggestion.

As for rates, just to repeat myself, Lombard will do 2.25% above FHBR at the moment on modest balances (£50k) for about £400/month
 
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As for rates, just to repeat myself, Lombard will do 2.25% above FHBR at the moment on modest balances (£50k) for about £400/month

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I just checked my agreement and it states 1.5% above FHBR from the same lender, this was taken out last August, so maybe some bargaining to be had for people about to jump in with finance!
 
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Problem with offset accounts is that there is usually a 25k limit on borrowing.

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Our One Account from RBS (was once Virgin, but then, weren't we all?) has no such limit. The limit is 50% of the value of the property. less any money we have already borrowed.

As a matter of interest, RBS rang us last week to say would we mind reducing the amount we had available? SWMBO asked why. They said they were obliged to keep that money ring fenced for us, in case we used it, and couldn't allocate the funds to anything else, so could they have it back?
 
well, in non-retail finance you would have to pay for the facility, whether you used it or not, so I can sort of see where they are coming from...given they are a bit hard up themselves these days /forums/images/graemlins/grin.gif
 
Yep, nice to be the one making the call whether we do something for them for a change /forums/images/graemlins/cool.gif

Do you think there is a futures market for retail secured loan facility derivatives?
 
Same with mine. the limit is 70% of property value. Also had the phone call to reduce the limit, but no pressure if I was going to use it. There is a limit on the amount drawn in one go without agreement - think it was £15k, but more for security I think.
 
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As a matter of interest, RBS rang us last week to say would we mind reducing the amount we had available? SWMBO asked why. They said they were obliged to keep that money ring fenced for us, in case we used it, and couldn't allocate the funds to anything else, so could they have it back?

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Hmm. The caller wasn't quite right. They dont keep it ringfenced any ore than they ringfence cash thsat you place on deposit (you might ask for that back too...). Instead they apply a risk factor to the facility and this burns up a small bit of their capital adequacy ratio. That's in short supply, which is why they asked you to reduce your facility
 
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