What's the marine mortgage market like now?

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What\'s the marine mortgage market like now?

In the same way that lack of available finance is squeezing the housing market, is it the same in the boat market or is it business as usual? Is it easy to obtain finance? Do you need more equity? What sort of interest rates are being quoted?
 
Re: What\'s the marine mortgage market like now?

talking at SIBS the banks were a shaddow of their former selves - down back alleys and no private bars and beer gardens....


Existing known customers are OK it seems - equity is more of an issue too - used to be 20% now 40%.

others I'm sure have better examples
 
Re: What\'s the marine mortgage market like now?

I know someone who works for Lombard, she says plenty of money to lend but few takers. Make of that what you will.
 
Re: What\'s the marine mortgage market like now?

I work in banking (please don't shoot!!), although not marine finance. I think it is reasonable to say that most banks around the world will be looking to consolidate / reduce / "right size" their balance sheets over the next year or so, which will have a big impact on their willingness and ability to lend. Therefore, they will tend to limit their lending activities to those sectors which have a good risk / reward balance....I'm not sure marine finance will fall into that. Be prepared to have to save before buying!!
 
Re: What\'s the marine mortgage market like now?

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I work in banking (please don't shoot!!), although not marine finance. I think it is reasonable to say that most banks around the world will be looking to consolidate / reduce / "right size" their balance sheets over the next year or so, which will have a big impact on their willingness and ability to lend. Therefore, they will tend to limit their lending activities to those sectors which have a good risk / reward balance....I'm not sure marine finance will fall into that. Be prepared to have to save before buying!!

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Why would you consider marine to be a bad risk/reward? I'd have assumed it was completely the opposite. Easy repo of assets plus a more likely higher credit scoring borrower.
 
Re: What\'s the marine mortgage market like now?

I guess it's because the value of the asset is uncertain. At least with a house, the bank can be fairly sure about it's value in the case of a repo and there's a ready auction market to sell it but with a boat, disposing of it could be a lot more difficult and the price a lot more variable
 
Re: What\'s the marine mortgage market like now?

Yep, and a boat value can be significantly reduced if it's abused or neglected for a relatively short period, and of course, boats can just disappear.
 
Re: What\'s the marine mortgage market like now?

but after they have sold your boat, you still are liable for any outstanding debt, so I m not convinced by that thought.
 
Re: What\'s the marine mortgage market like now?

Yep, I think the borrower has to sign a personal liability condition as well although I'm not 100% sure but even so, it costs the bank money to chase the borrower thru the courts and even if they get a judgement, the borrower may not be able to pay so there's definitely a risk factor
 
Re: What\'s the marine mortgage market like now?

I think longjohn has it about right. Housing and boats still have money to lend, but not risky money.

Although, that said - a retired lady I know went into Natwest two days ago and although her only means of income is an old age pension, she was offered a "no questions asked" £20k loan. Serioiusly - only two days ago!
 
Re: What\'s the marine mortgage market like now?

Marine mortgages are normally only available to house owners, so your marine mortgage is underwritten by your house. So if you default, bye bye house!
 
Re: What\'s the marine mortgage market like now?

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Marine mortgages are normally only available to house owners, so your marine mortgage is underwritten by your house. So if you default, bye bye house!

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You are completely wrong.

A Marine Mortgage (the clue is in the title) uses the boat as the collatoral asset, and the money is secured against that. Often you have to have the boat Part I registred so the mortgage can be noted, but not always.

Marine Mortagages are never secured against a property as a standard clause. That would be, er, a mortgage...
 
Re: What\'s the marine mortgage market like now?

he doesnt say the boat is secured aginst your house. He said mortgages are normally only available to house owners. As opposed to renting.
 
Re: What\'s the marine mortgage market like now?

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so your marine mortgage is underwritten by your house. So if you default, bye bye house!

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I rather think he says exactly that.

Which is wrong

By a long way
 
Re: What\'s the marine mortgage market like now?

Yes, but if you default on the boat, and the boat is sold by the bank for less than the value of the loan, the bank will come after you for the balance, so if you're a home owner the house or any other assets are ultimately at risk.

So what he means is you could lose the house, not you will lose the house.

Agreed though that the appeal of Marine Mortgages are that the loan is secured on the boat, although still cheaper to borrow against the house.

Better still, don't borrow.
 
Re: What\'s the marine mortgage market like now?

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Although, that said - a retired lady I know went into Natwest two days ago and although her only means of income is an old age pension, she was offered a "no questions asked" £20k loan. Seriously - only two days ago!

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They probably don't care. If she defaults, they can sell the dodgy loan to the government...
 
Re: What\'s the marine mortgage market like now?

Thats not what he said at all. He said that

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the marine mortgage is underwritten by your house

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which it isnt, never has been and as far as I can see never will be.
 
Re: What\'s the marine mortgage market like now?

No, it's a fair point. If you give a personal guarantee, then unless you can raise cash in another way to pay off your marine mortgage arrears, any other assets you own, including your house, are at risk. Same with any loan that you give a personal guarantee for
 
Re: What\'s the marine mortgage market like now?

As far as I'm aware you are correct. Marine mortgages are not underwritten by your house, but depending on circumstances the house could be at risk.
 
Re: What\'s the marine mortgage market like now?

Ok, but in that sense I also have never been asked to give a persoanl guarantee. All the marine agreements I have had have been secured by the vessel and nothing more.

I think a personal guarantee is rare especially if you are on the lenders standard terms.
 
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