Financing a boat purchase

[Ange]

Hi

 

I was wondering if anyone had any advice on the best way to finance a second hand boat purchase? We were planning to raise the money by getting a mortgage against the equity in our house, but the mortgage market is not looking too healthy at the moment. Any advice would be appreciated.

[bottle]

Hi

 

Marine mortgage

 

Personal loan

 

I would not dare to advise anyone how to borrow money but the above are two ways.

[WJM]

Some boats are mortgageable - that is the boat itself will carry the burden of security for the lender. Whenever possible, the asset being financed should always carry its own burden of security. Why offer them your house when they can have the boat, then if it goes pear shaped you only loose the boat.

 

There is an over-willingness in this country to offer your house as security - and the banks just love it because it makes a win-win situation for them, and a loose-loose situation for the borrower.

[Yoda]

Hi

 

I was wondering if anyone had any advice on the best way to finance a second hand boat purchase? We were planning to raise the money by getting a mortgage against the equity in our house, but the mortgage market is not looking too healthy at the moment. Any advice would be appreciated.

 

Most lenders would now not be interested.

[Black Ibis]

i know nothing about borrowing on a house but we got our mortgage secured on the boat - a specialist marine mortgage fron RoyScot Larch through Collidge and Partners. You have to raise a 20% deposit though, and it cant be from a loan.

Edited May 6, 2008 by Black Ibis

[Ange]

I read on another site that marine mortgages are an expensive way of borrowing. Have other members found this to be the case?

[Lady Muck]

Yes, its very expensive, but then again a boat is a high risk purchase compared to a house.....

 

We have the same mortgage as Black Ibis. The upside is that they will not let you buy a bucket, the amount of paperwork and the survey etc that they demand is exhaustive.

 

They do a mortgage where the loan is secured on the boat and another one where (if you are a home owner) it's secured on the house.

[Black Ibis]

I read on another site that marine mortgages are an expensive way of borrowing. Have other members found this to be the case?

 

Yeah, its about 10% APR as opposed to the 6-7% you'd get on a house mortgage. But as Lady Muck says, its a higher risk. I was refused a loan, anyway, so I didn't really have a choice.

[bottle]

At that rate (10%) cannot be much different to a personal loan, not checked, and little chance of losing the boat if you default, not that you would of course.

 

A lot of shopping around is required, by the looks of it.

[Lady Muck]

Personal loans, for some of us, are a fantasy. RSL are expensive, but a bit more flexible.

 

Anyway, the OP is a home owner, I'd suggest they do their shopping on moneysavingexpert.com

[denboy]

but isnt the marine mortgage over 10 years as oppossed to 25 yrs so you pay it off faster than 25 yrs ?

[carlt]

but isnt the marine mortgage over 10 years as oppossed to 25 yrs so you pay it off faster than 25 yrs ?

One would imagine so, otherwise it would be over 26 years or more.