Marine And Boat Purchase Financial Alternatives

If you had similar plans of buying a boat or yacht couple of years ago you wouldn’t have been able to do so. But today, the scenario is altogether different; at present, you’ll find enough number of marine finance lenders that are ready to offer tailor-made products to suit your budget. Compatible rates, less or absolutely no paper work, easy payback scheme are just some of the services you can find with almost all the marine finance lenders. Importantly, marine finance allows you to purchase most types of boat or yacht (powered or sail).

Marine finance can be obtained either in a form of marine mortgage here a charge is taken over the boat or in the case of an unsecured loan where no charge is taken; similar to what you find in a home finance loan.

Marine mortgage is mainly taken to fund purchase of a boat when the amount required is over £25,000. There is no upper limit (limited only by your ability to repay) to the amount available on marine mortgages. The repayment period can vary between two and 10 years depending upon the lender.

In the event of defaulting on your repayment the finance company can reposes your boat. Deposit amount is compulsory, which you can get for as low as 10 per cent of the cost price, but the general norm is 20 per cent deposit. In certain cases like where the vessel being purchased is priced significantly below valuation, it may be possible to negotiate a no deposit option, but it’s hard to come your way. Marine mortgage is ideal for purchase of smaller boats or any additional equipment you may wish to buy.

However, unsecured loan is a bit like a personal loan from a bank. Unsecured loan can be made available within a week. They are available for amounts from £1,000 to £25,000, typically used for smaller value boat purchases such as dinghies and small inland waterway craft, but can be also used for sails, engines, etc. On amounts over £15,000 for boat purchases, a deposit of up to 20 per cent of the cost may be required. The repayment option is between two and five years.