Marine Finance

Wavey

Wavey

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Anyone here used someone other than the big guys ie Lombard, HSBC etc to provide finance on the purchase of a boat?

Essentially what I'm looking for is short term finance which will be paid off in possibly just a month or two. The bigger players in the market don't appear able to be very flexible and I'm hoping someone else may be able to tailor a package for my particular needs. Googling "Marine Finance" list a whole raft of companies I've never heard of and I'm wary of going to smeone not knowing if they're good, bad or indifferent.

Any suggestions?
 
Highly unlikely any Marine finance provider would be interested in short term finance. Their business is based on providing long term finance, usually secured through a mortgage registered against the boat.

You are likely to have more luck with conventional banks, but of course their willingness to lend will depend very much on security, your record as a borrower and the likelihood of you being able to repay at the time specified.

Probably telling you something you already know, but really don't think conventional Marine lenders would be interested.
 
Check small print but on PFP for cars they have to only charge you for the interest over the period of the loan. Therefore I got a dealers discount of £850 for buying on PFP and paid in full after 3 months (min period to get discount entitlement). Interest was only for 3 months loan less discount!!

If case for Marine HP check set up costs and any early surrender charge.

I paid off all my three marine mortgages early and got a settlement figure.

One extra cost though is that marine Mortgages usually want boat to be part 1 registered and that requires a Tunnage (sic) survey. Cost of Registration, part 1 and survey approx £400 IIRC.

Be careful of quotes though as say 3% above base is above a lending rate (sorry forget name) not standard bank rate of 0.5%. Lending rate used to be 1% above base rate but may be higher now with imposed low BofE Bank Rate. If comparing products compare final monthly costs for equivalent deals rather than the BS!
 
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Wavey said:
Anyone here used someone other than the big guys ie Lombard, HSBC etc to provide finance on the purchase of a boat?

Essentially what I'm looking for is short term finance which will be paid off in possibly just a month or two. The bigger players in the market don't appear able to be very flexible and I'm hoping someone else may be able to tailor a package for my particular needs. Googling "Marine Finance" list a whole raft of companies I've never heard of and I'm wary of going to smeone not knowing if they're good, bad or indifferent.

Any suggestions?
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There won't be many lenders wanting to lend you money for a couple of months. If you declare your intentions up front, the answer will be NO! If you don't declare, and get a normal long term loan, you will face the penalties in a month or two when you settle up.

How much do you need?

Can you postpone the purchase for a month or two - when you will be able to pay cash?

Anything up to about £20k could be done on a few credit cards plus a bank overdraft.

WONGA.co.Uk ?? :)
 
Thanks for the replies.

I've ended up going down the marine finance route as my original plan of a bridging loan hit a brick wall. You can't get them for house purchases let alone anything else.

Fortunately the boat is already Part 1 registered so that's a help as regards marine finance. Don't want to delay as the boat I've put a deposit on ticks all the boxes and there's not many around. The chances of the deal I've secured repeating itself later are very, very small.

Will have a look at CGI - Thanks.
 
The way I got over the cost and inflexibility of marine finance was to borrow against the equity in my house. Aware not everybody can do it, but it is a really efficient way of financing a big purchase. I ended up having a Natwest One mortgage which is very handy if you have a lumpy income stream or expect to be able to pay off lump sums. Interest is charged on a daily basis and there is no penalty for early repayment. I have actually paid mine off (having retired) but the facility - essentially an overdraft with a very high limit but low interest - will be in place until I am 70.

Not for everyone, but worked well for me.
 
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