Financing a new boat is available, among others, to those people wanting to live aboard their narrowboats and widebeam barges. When financing a new boat of steel construction, lenders normally lend up to 80% of the cost of new narrowboats and barges and up to 75% of the value of used or partially completed boats.
Repayment periods of up to 15 years are available. People who want to live on their boats will need to arrange a permanent mooring rather than continually cruise the canals and waterways of the UK.
Financing a New Boat of your dreams
Also considered is funding for those thinking about fitting out their own new sailaway narrowboat or widebeam barge. The minimum specification considered for financing is typically a lined sailaway with heating and electrics installed.
If you are having a new boat built, under certain circumstances, lenders may offer your boat builder stage payments.
You may be buying a boat for private use or to operate it commercially. Whether you are buying direct from the boat builders / manufacturers or through a yacht broker / agent or perhaps ordering the construction of a new yacht or stock boat we would always recommend consulting a solicitor in advance of agreeing the sale.
There are often complex legal requirements and contractual law issues surrounding the sale and taking advice before you commit yourself will help to ensure your investment is protected.
There are a few things to be aware of when buying a new boat, ensure vessel is built and equipped to Boat Safety Scheme standards, ensure a valid certificate of compliance from the appropriate navigation authority is obtained, if buying through an agent make sure an indemnity is given by the boat builder is respect of the condition of boat, if operating commercially ensure the MCA Codes of Practice are adhered to and if buying abroad be aware of Recreational Craft Directive and ensure the vessel is CE marked to certify compliance.
When dealing with high value loans, some of the banks and large marine financiers take a mortgage over the boat. This is known as secured lending and the lender will often insist on the boat being registered on Part 1 of the UK Ship Register. By registering the vessel, not only does the lender use the vessel as security against the debt, they will also be able to register their interest against the vessel. It is strongly recommended to take legal advice before taking out a loan or mortgage on a vessel.