Marine Mortgages

[jimbo747]

Hi All,

 

I have no problem raising enough mortgage finance to buy a house, but i have bigger (smaller) plans - a boat.

 

I was just trying to get an idea on the availability of mortgages for boats and an indication of what, in percentage terms, they cost. I understand that you need a 25% deposit and the maximum term is 15 years, but what drives that maximum term (ie, is it down to the buyer or is it limited by amount borrowed?

 

Jimbo.

[Guest]

Hi All,

 

I have no problem raising enough mortgage finance to buy a house, but i have bigger (smaller) plans - a boat.

 

I was just trying to get an idea on the availability of mortgages for boats and an indication of what, in percentage terms, they cost. I understand that you need a 25% deposit and the maximum term is 15 years, but what drives that maximum term (ie, is it down to the buyer or is it limited by amount borrowed?

 

Jimbo.

 

For a marine mortgage on narrow boats your only current option is RoyScotLarch

 

I think the max. term is driven by the fact you are borrowing against something that is not 'bricks and mortar' and therefore this affects how long RSL are prepared to take a risk should you default...

[AidanLincs]

The interest rate is also dependent on the cost of the boat, your deposit and the term of the mortgage (actually a "chattel loan" which isn't quite the same thing). I found RSL to be very easy to deal with, and generally helpful. Their default loan is variable, but they also offer fixed rate loans at a slightly higher interest rate. Given the current interest rates, I think it makes sense to go down this route (this is what I did) - but they will only offer it if you ask them.

[Guest]

The interest rate is also dependent on the cost of the boat, your deposit and the term of the mortgage (actually a "chattel loan" which isn't quite the same thing). I found RSL to be very easy to deal with, and generally helpful. Their default loan is variable, but they also offer fixed rate loans at a slightly higher interest rate. Given the current interest rates, I think it makes sense to go down this route (this is what I did) - but they will only offer it if you ask them.

 

Perhaps things have changed but when we bought our boat in the summer of 2010 the application form made it clear we could have a variable or fixed rate.

 

They are a good company to deal with, agreed.

[Lesd]

Is it the case that you need to have a permanent residence ashore or a residential mooring to secure this type of loan ? As opposed to being a cc'er ?

Or did I imagine that ?

[jimbo747]

Thanks folks. What i'm trying to get an idea of is whether the interest rate is similar to a house mortgage (i.e., 4-6%) or more like a loan (8.99-14% etc)?

[Smelly]

Is it the case that you need to have a permanent residence ashore or a residential mooring to secure this type of loan ? As opposed to being a cc'er ?

Or did I imagine that ?

 

They like you to have an address; you need to get through a credit scoring exercise, and they like you to have a mooring so they know where their goods are should the situation go foul...

 

Thanks folks. What i'm trying to get an idea of is whether the interest rate is similar to a house mortgage (i.e., 4-6%) or more like a loan (8.99-14% etc)?

 

Mine's fixed to 5.5 above base

[AidanLincs]

Perhaps things have changed but when we bought our boat in the summer of 2010 the application form made it clear we could have a variable or fixed rate.

 

Can only go by my experience, but when I called to ask for a quote, I was initially given the variable rate deal only. At the end of the conversation, I asked if they had a fixed rate loan, and was then given the relevant information. I subsequently got both sets of paperwork through the post, and was asked to return one of them and destroy the other. I don't think I would have known about the fixed rate loan had I not asked. That said, apart from this omission (which I suppose could have been entirely inadvertant), the whole process of arranging the loan was very smooth.

[PiRSqwared]

Base rate + 7%. So currently 8%

[dor]

One thing to note when considering a bank loan vs marine mortgage: the marine mortgage is secured against the boat, while a bank loan will be secured against your property (if you have one - otherwise you are in unsecured loan territory and very high rates). Youc could put your house at risk if anything went wrong if you have a bank loan.