Back in the Water: Boat and Marine Finance with Marine Mortgages

At this time of year, the clocks have been changed and summer is on the horizon, and our attention turns to the marina as our watercraft leave their wintertime hard standing and return to the water. It is now that enquiries to finance the purchase of marine vessels of all types begin to stream in.

To many traditional finance houses, such items are seen as a bridge too far, but we have a readymade marine mortgage finance solution to help us provide the appropriate facility.

The marine mortgage facility is a clear example of our ability to see beyond the world of traditional asset finance. Using subtle variants of this particular product we have funded a variety of maritime vessels, including RIBs (Rigid Inflatable Boats), powerboats, jet skis, fishing boats, cruisers and yachts. The intended purpose of the marine vessel may be for personal, leisure or commercial use and be situated inland either on a lake, rivers or canals or on the open sea. Some of the more glamourous marine leisure-craft we have financed are currently harboured in the Med.

Who uses our marine finance solutions?
The profile of our marine finance clients has ranged from private individuals to small fishing businesses and maritime surveyors. The vessels have been supplied by a variety of sources including boat brokers, marine dealers and private individuals.

The finance product utilised is a marine mortgage, which quite simply consists of a fixed term, fixed-rate loan agreement and a security interest or mortgage in the proposed marine vessel. In some cases, the marine mortgage interest may be recorded on the UK Ship Register or at Companies House.

What’s the process for obtaining marine finance? 
If we compare marine finance to the process of funding other similar assets, such as cars or property, then the first thing to say is that the process of providing finance for a boat shares elements of both. It can be concluded in a relatively short timescale but more complex transactions may require professional input from surveyors and solicitors.

Documents required for marine finance
One such characteristic of significance is that boats have a number of documents that make up the title/ownership documents. The most pertinent documents are as follows:

 

  • Builders Certificate – Produced by the boat builder at the time of manufacture
  • Bills of Sale – Recording the passage of ownership from the previous vendors to the incumbent vendor
  • Registration Certificate – A record on the UK Ships Register (part of the Maritime and Coastguard Agency) if the vessel is registered in the UK. Registration falls into two categories; The Small Ships Register (SSR) also known as “Part III” or, the “Part I” registered. Find out more.

These documents should be readily available from the vendor, supplier or boat broker and must be submitted as part of the finance application along with the normal credit application information. This information helps us to assess the proposed purchase in accordance with our fair and responsible lending ethos.

Concluding the marine finance transaction
Once the marine finance application has been approved the finance documents can be drafted for signature and legal costs can be identified. These costs will differ depending upon what the vessel is, how it is to be used and its current registration status. From the perspective of the client then the finance aspect can be concluded in a timely fashion as with any similar asset finance transaction. In the background, we will be working with the lawyers and other agents to ensure that the registration and other elements are properly executed.
You can get a marine mortgage quote here.

Back in the Water: Boat and Marine Finance with Marine Mortgages

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