Marine Mortgages

[Tom_Peters]

I am looking for a provider of marine mortgages for those purchasing ex-working
barges for cruising or residential use.

The loans need to be actual mortgages, i.e.:

Secured by a charge on the ship's title
Interest rates similar to those for house mortgages
Interest calculation method similar to that for house mortgages

The amount of the loan would typically be between GBP 50,000 and GBP 250,000.

I look forward to any suggestions / advice people can give.

Thanks

Tom

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[Trevethan]

I suspect you will have difficulty... as you are asking for a loan on an asset that will be hard to sell if you default and could reduce in value dramatically

Firstly, marine mortgages are rarely given for liveaboard use. A few companies might give you one for a barge, but they don't seem that keen, and pretty much never for a liveaboard yacht..

I suspect you might get further if you are buying a mooring and barge - I.e. you then own a chunk of the riverbank - lenders understand about real estate, but boats are depreciating assets - why lend you money for something that could be worth next to nothing in 10 years time?

Hopefully you have a residential address, and better yet you own it yourself - don't bother with the oh we'll be be able to afford the boat when we don't have to pay rent argument!

Try talking to Barclays Marine Credit. They were very helpful. They'll usually be able to sort something out, but try and avoid the term liveaboard!

Rates are higher than a house mortgage, closer to that of a personal loan - 6% or 7%, and terms generally shorter - depreciating asset after all., but from a historical perspective, still very low.

You'll be required to pay between 10 and 25% as a down payment. The more you put down the happier the lender will be.

Hope this helps,

Regards

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[temptress]

I agree with the previous post.

Finance houses are very reluctant to lend for liveaboard/crusing use as they think that you will dissapear over the horizon.

In a previous life (previous boat) I managed to get a marine loan for a liveaboad. The way I did it was I took out the loan when living ashore and when I moved aboard I sort of 'forgot' to mention this. You need to be vary carefull what you say and how you answer the questions they ask you as you MUST be turthfull or you could end up in court! Make sure you have a UK postal address they can use and NEVER miss a payment or you will find your credit rating destroyed.

Marine Finance companies generally use the FHB (Finance House Base) rate plus a number of points (this plus factor can be anywhere between 1% and 5%) depending on your negociation skills and the size of the loan this will still work out at between 4 and 10% overall). The bigger the loan and the bigger the deposit the more likely you are to get a lower rate.

Good luck and please let the forum know how you fair as it's interesting to see what options are available out there.



<hr width=100% size=1>Temptress of Down
Southsea Marina
Hants
UK

 

[zephyrsailor]

if you have a house the cheapest way to borrow money to buy a boat is to remortgage the house. the intrest rates are cheapest. i borrowed a relitavly small amount on marine mortgage and was offered 3.5% above base rate (base rate about 5%) by bank of scotland and 4% above base rate by barclays. i guess it would be less if you borrowed more money tho.

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