Borrowing to buy a Boat
So you are looking around for the vessel of your dreams, but realising the limitations imposed by your finances - this is the time to harden up your purchase intentions by obtaining some facts relating to availability of a loan; this information will provide you with a sound foundation on which to base your search. The funds needed could be raised through a straightforward personal loan, especially if you have a house which is not mortgaged to the hilt and can be used to borrow against. This would give you the advantage of complete fluidity in the use of the sum borrowed, as the money would be yours to do with as you think fit. So if you should suddenly develop an aversion to water, you could use the funds to go trekking in the desert instead; just so long as you keep up the repayments there would be no problems.
If you are certain that boating is for you, and that your prospects are secure enough to enable you to think in terms of the better class of vessel, then you should certainly check out the marine finance specialists. As the name implies, such companies have considerable experience in providing loans for impecunious would-be mariners, and know many of the pitfalls which the erstwhile boat owner could unwittingly fall foul of. This experience, which will cover such day to day (for them) facts as the type of boat for the intended purpose, likely period before a change of boat becomes desirable, the knowledge of matters nautical required of and shown by the prospective owner etc., will help to ensure that the costs are accurately matched to the needs, which in turn holds down the costs and makes a competitive rate of repayment more likely.
Amongst others it would be well worth obtaining information from Barclays Marine Finance, Bank of Scotland Marine Finance or Lombard Marine - the latter being owned by the Royal Bank of Scotland. If you are looking to borrow more than £25,000, the boat will require a survey and registration with the Maritime and Coastguard Agency; if accepted it will then be the subject of a 10 to 15 years mortgage. You should expect this mortgage to be on a variable rate, but unlike a conventional mortgage the variation will be in the number of years required for repayment. Thus if the interest rate falls the term will be shortened and vice versa, but the repayments will remain constant month by month.
So, as with any loan you should shop around, but in this case make sure that you speak to the specialist marine providers. You could well find that the current rates are flowing strongly in your favour.