Loan

[blu]

Happy New Year!

I'm in the process of buying a narrowboat. Really looking forward to joining the community and living off grid as much as possible.

 

I'll need a loan to get the boat, I do have some savings. Banks don't loan to people buying a boat, so I was thinking of saying "home improvement" purposes. 

 

Does anyone have tips on that?

 

Btw, learning a lot from this forum, so thank you very much for all the invaluable insights.

[Alan de Enfield]

10 minutes ago, blu said:

Banks don't loan to people buying a boat

 

Well - Thats a new one on me, I've never heard of anyone being refused a personal loan because it is for a boat. A personal loan is measured against your ability to pay it back, it is a loan against you personally not a mortgage which is against the value of the item being bought.

 

Do a Google for UK Bank loan for a boat" and there are dozens of 'hits' for lenders.

Some info on raising funds :

 

Guide To Narrowboat Finance | Marine Mortgages, Equity Loans & Remortgages For Narrow Boats (thefitoutpontoon.co.uk)

[MtB]

17 minutes ago, blu said:

Banks don't loan to people buying a boat, so I was thinking of saying "home improvement" purposes. 

 

 

Are you sure about this? My own experience is banks are horribly wary and reluctant if you plan to spend the loan on an asset like shares or deposit for a house, but if you want to hose it up the wall on foreign holidays, cars or boats then that is fine. 

 

Its also fine if you genuinely want to get a personal loan for a home improvement, then at the last possible moment and with the cash in the bank, have a change of heart and decide to splurge it all on a boat instead. Don't tell anyone I told you this...

 

 

[blu]

8 minutes ago, Alan de Enfield said:

Well - Thats a new one on me, I've never heard of anyone being refused a personal loan because it is for a boat. A personal loan is measured against your ability to pay it back, it is a loan against you personally not a mortgage which is against the value of the item being bought.

 

I'm interested in paying for the boat in 4 years, no mortgate and to be cruising so that makes it difficult to get the loan from the bank - at least that's what my research has shown me. 

 

From the Guide To Narrowboat Finance | Marine Mortgages, Equity Loans & Remortgages For Narrow Boats (thefitoutpontoon.co.uk)
" Repayments can be up to 15 years and in the case of live-aboards, canal boat finance is usually only available to those who arrange a permanent home mooring."

 

 

 

3 minutes ago, MtB said:

Its also fine if you genuinely want to get a personal loan for a home improvement, then at the last possible moment and with the cash in the bank, have a change of heart and decide to splurge it all on a boat instead. Don't tell anyone I told you this...

 loved it, thanks

[Alan de Enfield]

5 minutes ago, blu said:

I'm interested in paying for the boat in 4 years, no mortgate and to be cruising so that makes it difficult to get the loan from the bank - at least that's what my research has shown me. 

 

If you are working and have an income which leaves you with enough 'discretionary spending' so that you can repay the loan then you should have no problem getting a bank loan - are you with a real (traditional) bank or one of these weird 'pop-up' internet banks ?

 

On a slightly different subject - are you aware of the cruising requirements, and the difficulties in achieving them if working from a fixed location?

[MtB]

9 minutes ago, blu said:

From the Guide To Narrowboat Finance | Marine Mortgages, Equity Loans & Remortgages For Narrow Boats (thefitoutpontoon.co.uk)
" Repayments can be up to 15 years and in the case of live-aboards, canal boat finance is usually only available to those who arrange a permanent home mooring."

 

This seems muddled to me. An "Equity loan" would be a secured loan I think, like a mortgage but secured on the boat. Far more trouble to arrange and massive up front fees probably too. Ignore, I suggest. Just apply for a personal loan while you still have a house or land address. Hopefully you'll be keeping this as you'll need it as a CCer. 

 

 

 

The one problem I can foresee with a personal loan is the limit used to be £30k. Not enough to buy a decent boat to live on. 

 

This limit may have been raised recently though.

 

 

[Alan de Enfield]

1 minute ago, MtB said:

 

This seems muddled to me. An "Equity loan" would be a secured loan I think, like a mortgage but secured on the boat. Far more trouble to arrange and massive up front fees probably too. Ignore, I suggest. Just apply for a personal loan while you still have a house or land address. Hopefully you'll be keeping this as you'll need it as a CCer. 

 

 

 

 

Exactly, I'd suggested he/she/it should get a personal loan, it was just to show options if he/she/it cannot get a bank loan.

[Barneyp]

1 hour ago, blu said:

 

I'm interested in paying for the boat in 4 years, no mortgate and to be cruising so that makes it difficult to get the loan from the bank - at least that's what my research has shown me. 

 

From the Guide To Narrowboat Finance | Marine Mortgages, Equity Loans & Remortgages For Narrow Boats (thefitoutpontoon.co.uk)
" Repayments can be up to 15 years and in the case of live-aboards, canal boat finance is usually only available to those who arrange a permanent ho

me mooring."

........

The fact that you are going to be cruising without a fixed address shouldn't make it difficult to get a personal loan.

The bank (or other financial organisation) will judge whether to lend you the money on your financial history, not what you're going to do in the future. If you've changed address (or not had one) a lot in the last few years, or if your income has been inconsistent, that may count against you, as they value stability. Also they like a history of financial transactions to show your reliability e.g. utility bills, council tax, rent paid on time. 

You shouldn't outright lie on the application, the question about what you intend to use the money for is at least partly for them to plan future marketing and will have limited effect on the decision they make on your loan, given you normally have to choose from a list of options, "home improvement" could be a reasonable answer in your circumstances.

 

Have a look on:

www.moneysavingexpert.com/loans/

A good way to get the best deal, and see how much you can borrow.

1 hour ago, Alan de Enfield said:

......

Do a Google for UK Bank loan for a boat" and there are dozens of 'hits' for lenders.

Some info on raising funds :

 

Guide To Narrowboat Finance | Marine Mortgages, Equity Loans & Remortgages For Narrow Boats (thefitoutpontoon.co.uk)

In reality while the loan may be marketed as a "marine loan" it is likely to be a personal loan.

[blu]

3 minutes ago, Barneyp said:

Have a look on:

www.moneysavingexpert.com/loans/

A good way to get the best deal, and see how much you can borrow.

 

Thanks Barneyp - yeah  I did that already and it seems the money  can get is the amount I need 

 

 

1 hour ago, Alan de Enfield said:

On a slightly different subject - are you aware of the cruising requirements, and the difficulties in achieving them if working from a fixed location?

 

Sure. That's been taken into consideration

 

And yeah, on fixed income and good track record of paying bill and stuff so it seems like bak it is then. Thank you all!

[MtB]

32 minutes ago, Barneyp said:

The fact that you are going to be cruising without a fixed address shouldn't make it difficult to get a personal loan.

 

Mind you, putting "no fixed abode" in the address section of a loan application probably won't go down too well....

 

They use the address (and any others in less than 3 years) to do a credit search, looking for bad debts and CCJs. 

 

 

Edited December 31, 2023 by MtB
Speeling

[blackrose]

2 hours ago, MtB said:

...but if you want to hose it up the wall on foreign holidays, cars or boats then that is fine.

 

I thought the phrase was "spaff it up the wall"? à la Boris Johnson

[David Mack]

58 minutes ago, MtB said:

Mind you, putting "no fixed abode" in the address section of a loan application probably won't go down too well....

 

They use the address (and any others in less than 3 years) to do a credit search, looking for bad debts and CCJs. 

But the OP will be taking out the loan while living in bricks and morter, so no problem on that score. Once he has the money he can buy the boat and give up his fixed abode.

[MtB]

7 minutes ago, David Mack said:

But the OP will be taking out the loan while living in bricks and morter, so no problem on that score. Once he has the money he can buy the boat and give up his fixed abode.

 

True. 

 

One thing to watch out for though, is to still maintain a land address. Any further loan applications with a gap will be treated with deep suspicion by potential future lenders. DAMHIK. 

[blu]

I've got a friend who owns a property and is happy for me to use their address. 

I'm planing to use that address  f.o.r.e.v.e.r - or until I get fed up of living aboard 

[Momac]

Quite a few years ago I used to have personal loans to help buy cars .

At no point did I ever have to prove to the lender that I had actually bought a car.

So a loan was paid off and  I perhaps some time later started another loan with the same lender . I came to a time when instead of changing the car using the loan I bought a boat.

 

Therefore if its  a personal unsecured loan you can buy anything with the money. All the lender asks is you pay it back, with interest of course ,  according to the agreement.

 

I expect such a loan would be limited in amount  the £1 to £25k bracket and paid back over 1 to 7 years - eg Co-Op bank

https://www.co-operativebank.co.uk/products/loans/

 

 

[DShK]

I used a personal loan from my bank. Didn't have to state what I was using it for beyond "large purchase". It's not secured against anything so it doesn't really matter. I think it's better to use your main bank for these type of loans as they have much more data on you, so will offer more/better interest. When I swapped banks I could see the amount that the old bank would offer me go down.

Edited January 1 by DShK

[truckcab79]

Any lender will do. They’ll just run an Experian check on you to look at your history.  If you have a history of paying off anything you’ve borrowed without gaps then you’ll be fine.  
 

In a previous life in retail we used to get interest free credit applications some of which would horrify you. Recall one client, a doctor, borrowing money for a furniture purchase.  Checks showed she was already servicing £450k of loans WITHOUT including her mortgage.  (And none of them individually more than £30k). No reason to refuse her as she had never missed a payment on any of them.  I couldn’t sleep at night,  let alone borrow more. 

[Momac]

When we moved to our present house  we needed some furniture. But the address had no credit history because it was newly built and  we  were the first owners. So we gave the retailer our previous address and all was good.

 

One of the tenants at a neighbouring house had a serious bad debt (bankrupt). The landlord did not receive his rent for several months. But worse still the property had a lien placed on it which had to be cleared and that required legal help . It was all sorted but the landlord sold up after that experience.

 

 

[BoatinglifeupNorth]

19 hours ago, blu said:

I've got a friend who owns a property and is happy for me to use their address. 

I'm planing to use that address  f.o.r.e.v.e.r - or until I get fed up of living aboard 

Someone mentioned on here that the average time that a Newbie livaboard had a boat was 1.5 years, then they sold it. I can’t remember if they said it was for a CCer or Marina based. Seams to be more Youtubers and people on Social Media realising it’s not what it’s cracked out to be and putting honest experiences on, instead of the Rosy & Jim dreamers.

Edited January 1 by BoatinglifeupNorth

[DShK]

I wonder where they got that data. Or whether they made it up to paint a picture.

 

Im at 1.5 years! I doubled down and bought a second boat 😁

[BoatinglifeupNorth]

3 minutes ago, DShK said:

I wonder where they got that data. Or whether they made it up to paint a picture.

 Someone asked the same question. I imagine it may be true for the young London Continuous Cruisers/Moorers or for people who bought a boat during/after Lockdown, who spent all day locked in watching Narrowboat Vlogs on Youtube.

[Barneyp]

42 minutes ago, DShK said:

I wonder where they got that data. Or whether they made it up to paint a picture.

 

Im at 1.5 years! I doubled down and bought a second boat 😁

I think it was something they'd heard from one of the fuel boats, so a guess from one person based on the boats they were servicing. For people in London who choose to live on a boat purely because it's cheap it maybe a fairly accurate statistic, CRT probably have better data.

[Ewan123]

8 hours ago, BoatinglifeupNorth said:

 Someone asked the same question. I imagine it may be true for the young London Continuous Cruisers/Moorers or for people who bought a boat during/after Lockdown, who spent all day locked in watching Narrowboat Vlogs on Youtube.

We spent all day locked in following multiple vlogs before we bought our boat during lockdown, December 2020. We were even Continuous Moorers for a few months (not enthusiastically, it was the final Covid lockdown ). We're still loving life aboard though, so I don't think that's a very fair generalisation.

 

Though we did use the boat as a means to escape London rather than to remain there... maybe that's the key.

[BoatinglifeupNorth]

28 minutes ago, Ewan123 said:

We spent all day locked in following multiple vlogs before we bought our boat during lockdown, December 2020. We were even Continuous Moorers for a few months (not enthusiastically, it was the final Covid lockdown ). We're still loving life aboard though, so I don't think that's a very fair generalisation.

 

Though we did use the boat as a means to escape London rather than to remain there... maybe that's the key.

 As you say not enthusiastically and you got out of London, sounds it may of been different if you were doing it for more than the couple of months honeymoon period CCing in London. 

Edited January 1 by BoatinglifeupNorth

[Ewan123]

30 minutes ago, BoatinglifeupNorth said:

 As you say not enthusiastically and you got out of London, sounds it may of been different if you were doing it for more than the couple of months honeymoon period CCing in London. 

Actually the more I think on it, the more I'm coming to your side. If we'd stayed in London for 1.5 years on the boat I think we might have abandoned life, let alone the boat!