Marine mortgage

[jonathankent]

Now I cannot afford to buy my first house... prices here are extortionate and pose no opportunity for first time buyers, so I have considered buying a larger yacht (30-35') and living onboard. Is this possible with a marine mortgage, yet not having any other capital in which to secure it on? To buy a larger yacht for 30-40k and moor in the marina would without doubt make me financially better off, and I would get the yacht that I could otherwise only dream of having... best of both worlds.

Anyone else done this, or could offer assistance on the subject? Perhaps someone who works for the marine mortgage lenders? Any advice much appreciated.

 

[FullCircle]

You would not need a maortgage - a marine loan is almost the same, about 0.5-0.75% over mortgage rates, needing a deposit of about 20-25%. 10-15 year term if required.
You would not need to Part 1 register it either.
Perhaps fudging the issue of living on it until it is in your hands may be a recommended course.
Bank Of Scotland were excellent with my purchase.

 

[srm]

I did this many years ago when living in a rented house. The mortgage was secured on the boat, but this requires the full registry (not SSR). Try contacting specialist marine finance companies or even high street banks if you live in a fishing area. Mine was through the Clydesdale bank in Lerwick as they were used to financing fishing vessels this way.

Details have probably changed since then, but the broad principle remains.

 

[Richard10002]

[ QUOTE ]
You would not need a maortgage - a marine loan is almost the same, about 0.5-0.75% over mortgage rates, needing a deposit of about 20-25%. 10-15 year term if required.
You would not need to Part 1 register it either.
Perhaps fudging the issue of living on it until it is in your hands may be a recommended course.
Bank Of Scotland were excellent with my purchase.

[/ QUOTE ]

Agreed... whilst it was only a backstop, Nat West changed their stance and wouldnt lend when they discovered i was going to live aboard.

Richard

 

[ajt]

Some marinas do not like liveaboards so best to check first