How do you go about it ???

[kazz]

HI to everyone im new to this forum & was after a bit of advice regarding financing the purchase of a narrowboat (1st Timer). How does financing the purchase differ to a house purchase & any tips, advice or financing recomendations would be helpful. Kazz

[bottle]

Kazz

 

Welcome to the forum.

 

You can finance the purchase of a boat the same way that you finance the purchase of anything else and there are specialist finance companies that will supply a 'marine mortgage'. (google)

 

My advice (not proffesional) is to shop around.

[kazz]

So i take it you would just source a good marine mortgage co ( Recomendations anyone ) & would i need to find a boat first or moorings at the present time i would be unable to permanently live aboard due to work commitments & does this have any effect the financing. SO MANY QUESTIONS !!!

[denboy]

Things may have changed over the last couple of years but when my nephew bought his boat thru a marine finance company they would give him a "loan" upto 15k over 15k it then bacame a marine "morgage" providing he paid a 20% deposit

[NB Willawaw]

Do you have property to use as security against the loan or are you living in rented accommodation etc ?

[kazz]

No property to use as security, would the security for the purchase be the purchased boat?

[NB Willawaw]

In theory yes, but boats are not particularly good security if the lender has little other security.

I would suggest you talk your personal circumstances over with a marine finance company to see how much they will give you.

There is no point in doing too much research until you have some idea what kind of capital you could raise.

Edited July 11, 2007 by NB Willawaw

[Lady Muck]

Hi, we got a marine mortgage. The bank would not lend us much at all as a personal loan because we are self employed and owned no property so they considered us too high a risk. We needed to borrow more to buy our boat than any bank would lend unsecured.

 

The interest isn't good compared to a loan, you need a big deposit and they make checks to ensure that it isn't from taking out another loan, you have to fullfill all kinds of requirements (a proper mooring, a survey, RCD, Bill of Sale, proof of ownership from seller, which (IMO) was alot harder than trying to organise a house mortgage. I even had to send in photos of the boats CE mark - they were very thorough, but in a way, I'm pleased, they weren't going to let me buy a dodgy boat with dodgy paperwork!

 

The good thing about getting our marine mortgage was that they were willing to lend to us where the bank didn't want to know.

 

As long as you can find a decent deposit I'd say the hardest thing is fulfilling the mooring requirements - no mooring, no mortgage!

Edited July 11, 2007 by Lady Muck