Considerations

Considerations

29 November 2011
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MORTGAGE FOR A VESSEL TO LIVE ON

Finding a marine mortgage for this particular area however is much more difficult.  You will have to do more research for a good lender and some of the reasons for this are:

The vessel should have at least 12 months secured moorings.

In a lenders opinion, the ‘live on board’ choices carry more risk.

Lender feel that if you can not afford bricks n mortar, because living on a boat is much cheaper and therefore carry’s more risk.

In the event of a default, a boat is much harder to repossess, than a traditional house.

A bricks and mortar mortgage falls under FSA rules, in contrast a marine mortgage for leisure craft which does not.

Any type of sea-faring vessel will not qualify. (as you may sail it away and never come back!!)

Typical mortgage periods are usually from 2 to 15 years, with 10 years being the norm with the loan to value amount of usually 80%.

What can be in your favour?

Permanently moored vessels

Dutch barges

Narrowboats

Non-engined vessels with permanent moorings

It’s estimated that around 15,000 people currently live onboard their own boat ranging from coastal berths, canalside to river moorings.

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