Smaller marine mortgage suppliers

[Ubergeekian]

Folks,

Can anyone suggest a lender or broker who is good at smaller marine mortgages, in the £20,000 - £25,000 range? Barclays won't lend less than £25,000 and Lombard will only lend less than £25,000 with a 30% deposit over seven years at most.

 

[Tranona]

That reflects the "attractiveness" of the market! When the cost of repossessions has worked itself through and lenders have run out of "better" lending propositions they might return.

In the meantime unsecured borrowing is still a possibility for smaller amounts as is the old favourite of borrowing against the security of your property if you have one.

 

[Boat44]

Asuuming you have a house one, have you tried them? Mine allow you to borrow for a boat on your house one. Very kind chaps as its cheaper than a marine one.

 

[Ubergeekian]

Asuuming you have a house one, have you tried them? Mine allow you to borrow for a boat on your house one. Very kind chaps as its cheaper than a marine one.

Good suggestion. I'll ask. Luckily I have a 40% mortgage on the house ...

 

[Tranona]

Depending on your circumstances you may find an Offset or "One Account" mortgage suitable as you only pay interest on the net balance of your mortgage and savings (if you have any!) Allows a lot of flexibility to pay off or extend within your limits without penalty. Usually you can get a facility up to 80% of the value of your house.

 

[jac]

Would look very carefully at offset type deals.

The theory is really attractive but in reality the rate is not so good and there are relatively few people around with sufficient savings to offset the higher rate they pay. And if you have such a lot of savings - why not just pay a lump sum into the mortgage in the first place and keep a smaller contingency sum.

IMHO only really suitable for higher rate tax payers who have to pay large sums ( relative to the mortgage) in tax etc each year. Whack into the one a/c when you get it and then send to tax man.

DO the sums - you may well be better off with a dirt cheap mortgage and then savings in a competitive a/c rather than a one a/c.

Also - be aware that on many - the rate is dependent on the limit - not the balance - so yes you can have 80% of house value but you'll pay for it.

 

[Tranona]

Agree that a One Account is not for everybody, neither is an offset - as you may know they are not the same thing. However, if you do have irregular income, are a higher rate taxpayer and don't want to pay penalties for early repayments they are good. The rate is competitive with other variables and falls as the %age limit rises. The effective rate can be lower than a conventional mortgage as interest is calculated on a daily rate. Plus when I took mine out the arrangement fee was minimal - might not even have been any, just the survey and solicitors fee.

Although I have paid mine off because I took early retirement, I have kept it running at a lower limit and it provides effectively an overdraft facility until I am 70. Current rate of interest is 3.65%.

As I say, not for everyone, but I think an underrated product if you have a large amount of equity in your property.