Financing your Boat | Boats and VAT | Marine Mortgages | Considerations | Referring to Yachts
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FINANCING YOUR BOAT
This particular area of financing is referred to under many different headings IE marine loans, asset finance, yacht finance and the marine mortgage.
The most typical type of loan is a marine mortgage – A sum of monies secured on the value of the boat, somewhat similar to a house. Amounts do vary but the minimum is usually around £10,000. Requirements are a valuation, a marine survey and a certified insurance policy. Marine mortgages can usually be used for most types of boat.
You can also obtain an unsecured loan, where there will not be a charge on the vessel but be prepared to pay higher interest charges for the privilege.
A marine loan is mainly used for smaller craft, the updating of equipment or a possible refit.
Your boat will need to be registered when taking out finance. Having full registration provides the owner with complete title and of course classed as extra security for your marine mortgage. The Registry of Shipping and Seamen issues the certificate and you will find it is a stipulation of most countries.
The other type of registration is the Small Ships Register which is governed by the MCA (Maritime and Coastguard Agency) and which in turn is under the control of the Department of Transport. This registration is not always accepted as full title by all financial companies and as such it may not be possible to obtain a marine mortgage because it is not classed full title or full ownership.