The new and used boat sales market experienced an impressive uplift in sales in the UK in 2021. This notable increase from recent years was due to a number of factors: boat buyers having delayed their purchases from 2020; the staycation factor encouraging leisure activity in the UK and the Covid factor encouraging people to bring forward their dream of owning a boat and this, in turn, encouraged some new and younger customers to purchase their first boat.
Boat owners who have owned multiple boats are often well informed of the various ways they can raise funds to buy their boat. However, those new to the boating world may not be so familiar with the options available to them and some may be unaware of marine finance and its benefits.
Can you get a mortgage on a boat?
Yes, you can get a mortgage on a boat! The great advantage for marine finance over other possible sources of funds is that the boat loan is a mortgage with the boat as security. This allows the finance to be compartmentalised with the boat and is settled when the boat is sold or could be settled early. The advantage of using this method to pay for the boat rather than cash, for example, is that if you use boat finance those cash resources can be directed elsewhere or kept for an emergency. Another source of funds to buy a boat could be to choose to release funds from investments or pension pots, but then perhaps this would be better left for now to accumulate especially noting the instability of the markets and their recent gains.
What other options are available and why might a marine mortgage be the better option?
Business owners may consider drawing funds from their business and though this may be fine for some, there will be others who have taken advice who feel this is not the best solution. This could be because it is not the most tax-efficient method and that it would be wise to ensure the business is protected with reserves whilst also keeping the option open to move quickly to take advantage of future business investment opportunities.
A final option to raise funds to buy a boat could be to raise funds against property. This could well result in a comparatively good rate of interest, but then looking at the bigger picture it could restrict further funds being raised to make home improvements or even restrict a move to the next house.
We are delighted that the boat sales market enjoyed a resurgence in 2021 and as long as the supply of boats can keep up with demand, then 2022 is already looking to be another strong year for boat sales. For those starting to research their next boat for the season ahead, why not get in touch with one of our marine finance specialists and they will be happy to assist with your enquiries.
What else can Arkle Finance fund?
Marine finance is a small part of what we do. Arkle is a funder specialising in a wide range of asset finance and leasing products to support UK businesses and consumers. We help businesses large and small, as well as private individuals, to obtain business assets, such as equipment and vehicles, as well as more specialist assets like boats and planes.
Please contact us if you have any asset finance enquiries and our team will ensure you are looked after. Call 01933 304789 or contact us online.