Boat Finance and Marine Mortgages
If you've ever thought about buying a boat you may be surprised to know that you don't necessarily have to have all the cash in the bank...
But how do you finance the purchase of a boat. Is it a Boat Mortgage you need, is it called a Boat Loan, or do you search for Marine Finance..?
Promarine Finance have put together a really useful article below to introduce some of the options you have, the application process for finance, and also a little more about what it does.
So if you've ever dreamed about owning a boat or upgrading your existing boat, those dreams could become reality sooner than you think...!
What the experts say....
At Promarine Finance we're always surprised when we're told by new customers that they didn't know boat finance existed. For many customers, the first time they know it could be possible for them to finance the purchase of a boat is when they speak to a boat broker, visit our website or pick up the phone..!
Why are so many people unaware that boat finance could be possible...?
It all starts with how we pretty much do everything these days - a search online...
When you search "where can I get a marine mortgage", "can I get a loan on a boat" or "does marine finance exist" the search engines generate a lot of results for you to filter through. These can include loan brokers, payday lenders and boat sales companies, so it's pretty unclear who you should be approaching.
In reality there are only a few genuine marine mortgage companies operating in the UK and to save you the trouble of finding them - here they are..!
- Promarine Finance
- Arkle Finance
- Close Marine
- CGI Finance
But is it affordable for you to own a boat..?
Owning a boat does come at a cost... Not only is there the cost of buying a boat, but you'll also need to consider mooring costs, insurance and ongoing maintenance and repairs, so it's wise to investigate these costs before you sign on the dotted line...
The cost of buying the boat will undoubtedly be the most expensive part, but this can actually be spread over a period of time to suit your budget.
We regularly hear "I'm not sure whether now is financially the right time to buy a boat", but as most boat owners will tell you, is there ever a right time..?
There's actually a lot more flexibility available with boat finance than you may have thought. You may be interested to know that our marine mortgages don't have to remain in place for the full term and can be settled earlier should you find yourself with surplus funds, or an investment matures a little sooner than expected. Repayments can also be increased to shorten the lending term or repaid if you sell the boat.
"Our view is that a marine mortgage should give you the flexibility you need, allowing you to get the boat you want - and enjoy that boat for a long as you wish"....
With few lenders in the market for boat buyers to choose from the options are limited, but the upside of that is finding out what lending could be available to you doesn't take too long. Some banks will be cheaper than others, but these often have a lot of restrictions. Alternatively, some customers prefer to pay a little more for a quick simple process with added flexibility.
We're always happy to talk these options through to ensure you make the decision that's right for you...
Marine Mortages explained...
A marine mortgage is basically a loan secured against a boat. Currently, this facility is only available from the companies we mentioned earlier in the article.
As a secured finance product, lenders can be more flexible with the terms they can offer. This means that repayment terms, loan to value ratio and loan amounts will generally be greater than those of an unsecured personal loan. Importantly, a marine mortgage is secured against the boat, not your own personal property.
Subject to credit approval, we can offer repayment terms from 1 month to 15 years. You can also finance up to 80% of the value of the boat you're considering buying (i.e., you'll need a 20% deposit) and you don't even have to be a home owner.
We also understand that many customers are looking for a permanent life on the water, so we can provide lending if you intend to live on your boat - the official term for this is 'liveaboard'...
With a fast-moving boat sales market, we aim to provide a credit decision with 24 hours (which is the quickest in the industry) as we don't want you to miss out once you've found your perfect boat.
What you may not know it that the team at Promarine Finance are experienced and passionate boaters who actively want to help more people get out on the water. As boaters ourselves, we can gain a real understanding of our customers individual circumstances and review affordability, run through the credit checks and process applications in a more knowledgeable and friendly way.
The process itself couldn't be easier. Click on the link below and fill out a few details to receive a no obligation quote. If you'd like to take it a little further we simply invite you to apply. No pressure, no selling, and no obligation...
What happens when boat finance is approved..?
Once you get the green light (which most people do) we then provide a finance offer. This offer states various conditions of finance including procurement of the Title Documents (previous Bills of Sale) and a Pre-Purchase Out of Water Survey, which you'll need to arrange.
If you're a first-time boat buyer there may be some unfamiliar terms, so we've produced a useful guide which you can view on the link below. You'll also find that the boat broker can usually help obtain all the relevant documents you'll need.
Arranging for a professional surveyor to survey the boat can currently take a week or so. There is a cost to this and before you spend any money, we recommend you check the title documents first and email a copy to us.
Typically, boats used on inland waterways such as Narrow Boats and Canal Boats (less so Widebeams) have less accurate histories than ocean going vessels. For this reason, we try to be flexible and assist you in confirming the vendor of the vessel is entitled to sell it free of any lien (a lien is the right to keep possession of property belonging to another person until a debt owned by that person is discharged)..
So, the survey and title docs are all fine.. What next..?
All you need to do is sign the documentation agreeing to the terms and pay the deposit to the broker. You will also need to have fully comprehensive boat insurance in place, and we can then release the balance of the funds which will be transferred on your behalf upon completion.
Your regular payments are made by direct debit, but should you wish to pay off lump sums (if you find yourself with some spare cash) we can offer you options to reduce the term and keep the same payments, or alternatively keep the same term and reduce the payment. Whatever works best for you...
What happens when you sell the boat...?
Being boaters ourselves, we understand that a boating adventure can last a lifetime, a season, or a decade. We also understand that many fellow boaters may upgrade, downgrade, or change their boats for newer models. Whatever boating life throws at you, we're here to help and that's why Promarine Finance terms offer early settlement without penalty and if you're changing your boat, we make it as simple to change the contract as we did to help you purchase your previous boat.
If you're thinking about buying a boat, need a finance quote, or would like to talk to a member of team to discuss what options could be available, don't hesitate to get in touch below...