Buying a boat is a significant investment, and understanding how marine finance works can help you make confident, informed decisions. Whether you’re looking at a narrowboat, sailing yacht, or motor boat, this guide covers the essentials of marine mortgages in the UK.
- What is a marine mortgage?
- Marine mortgage requirements: what do you need to qualify?
- Where can you get a marine mortgage in the UK?
- How to apply for a marine mortgage?
What is a marine mortgage and how does it work?
A marine mortgage is an ideal solution for those looking for a personal/business loan to buy a boat or vessel. Opting for a marine mortgage means securing a loan on your preferred vessel.
Benefits include the ability to borrow more and greater flexibility compared to an unsecured loan, as borrowing is secured against an asset (your boat). Unlike many other lenders, Promarine’s marine mortgages do not require a fixed UK residential address — a distinct advantage for those looking to live aboard.
Marine mortgage vs personal loan
If you fail to make repayments on a marine mortgage, your boat — which is used as collateral — can be repossessed and sold to recover the debt. This is similar to how a traditional property mortgage works.
With a personal loan, there’s no security against a specific asset. However, if you default, the lender can take legal action, and a court may instruct bailiffs to seize personal assets to settle the debt.
Some buyers also choose to remortgage their home to finance a boat purchase. While this may offer lower interest rates than other borrowing options, it carries significant risk: your home is at stake if you can’t keep up with repayments. Remortgaging can also reduce your long-term financial flexibility, increase your overall debt term, and in some cases, incur early settlement penalties from your mortgage provider.
When choosing between these options, it’s important to weigh the risk, cost, and impact on your financial stability — especially if you’re considering securing debt against your home or vessel.
Comparison between marine mortgage, personal loan, and property remortgage
| Feature | Marine Mortgage | Personal Loan | Property Remortgage |
| Security/Collateral | Secured on your boat | Unsecured (based on creditworthiness) | Secured on your home |
| Typical Loan Size | Higher borrowing limits | Lower borrowing limits | High borrowing potential |
| Eligibility Abroad | Doesn’t require a fixed UK address | Usually requires UK residential address | Requires UK property ownership |
| Risk of Repossession | Boat can be repossessed | No direct asset repossession | Home can be repossessed |
| Usage Flexibility | Used specifically for vessel purchase | Can be used for various purposes | Can free up funds for any use |
| Interest Rates | Can be fixed or variable | Can be fixed or variable | Can be fixed or variable (typically lower, but complexity varies by lender) |
| Early Repayment Fees | Some lenders charge fees – Promarine does not | Usually no early repayment fees | Often includes early repayment charges – varies by lender |
| Impact on Financial Flexibility | Medium – linked to a new asset | Low – less long-term impact | High – affects mortgage term and repayments |
| Approval Complexity | Moderate (asset valuation involved) | Easier and faster to arrange | Involves full mortgage assessment, valuation, and fees |
Fixed-rate or variable-rate: What’s right for you?
Different lenders and deals come with their own terms, and both fixed-rate and variable-rate loans are commonly offered. We offer both fixed and variable rate loans depending on factors such as loan amount and boat type. Fixed rates can provide stability, while variable rates may offer greater flexibility and potential savings, particularly for borrowers who are comfortable with rate changes or plan to repay early. It’s important to consider both options carefully to choose the one that best suits your needs and financial plans.
Boat financing might seem daunting due to the lack of lenders and therefore lack of public information. Speaking to lenders to gain an understanding of the basics and conducting research will help you make the most informed decision.
Marine mortgage requirements: What do you need to qualify?
As with any mortgage contracts you enter, you will pay interest over a fixed term. So, ensuring the loan fits within your budget before committing yourself to an agreement is vital. The amount you will be asked to repay is influenced by several factors including:
- the type of boat mortgage you choose
- the length of repayment term
- your deposit payment (the more you put down, the less you have to pay back)
Lenders must follow strict guidelines to check whether a borrower can afford their mortgage repayments. They will want to see proof of your income and any debts you may have. For example, at Promarine, we ask for a satisfactory credit search alongside three months’ worth of bank statements to confirm these details.
You can use our quote calculator to get an instant, personalised quote tailored to your needs, with approval provided within 24 hours of your completed application.
Where can you get a marine mortgage in the UK?
While some finance options may appear attractive at first glance, it’s important to review the terms carefully — particularly around early repayment penalties, arrangement fees, and ongoing charges. Always ask your lender to clarify how costs are structured so you can make an informed decision.
Keep in mind that marine mortgages are a specialist product. Many traditional mortgage brokers or independent financial advisers (IFAs) may not have experience in this area or access to the right lenders. Speaking directly with a marine finance provider can ensure you get advice tailored to your needs.
Why Choose Promarine Finance?
- Personal, friendly, and flexible customer service tailored to boat buyers
- Instant online quotes and decisions typically within 24 hours
- Experts in all types of boat finance, backed by over 20 years of experience and a team who have owned and sailed a wide variety of boats themselves
At Promarine Finance, we offer both fixed and variable-rate marine mortgages with flexible terms of up to 10 years. We tailor each finance solution to suit your circumstances and goals for boat ownership.
Our approval process is simple, with fast, personal decisions made by our in-house team.
How to apply for a marine mortgage?
Set sail sooner – Get your boat loan in 4 easy steps:
- Use our online marine mortgage calculator to get an instant quote tailored to your budget and boat type.
- Complete the short online application in our apply now page – it only takes a few minutes.
- We’ll conduct a credit search and request access to your bank account information.
- Get your credit decision within 24 hours!.
Marine Mortgage FAQs
- Can you get a mortgage on a liveaboard in the UK?
Yes, you can get a marine mortgage for a liveaboard in the UK. The process is similar to getting a mortgage for a traditional property, but the boat itself acts as collateral.
- How are marine mortgage rates calculated, and what affects them?
Marine mortgage rates are typically based on factors such as the value, type of the boat, the loan structure (fixed or variable), and your financial history. Unlike many lenders, our rates are not affected by the loan-to-value (LTV) ratio.
- What’s the difference between marine finance and a boat loan?
Marine finance and boat loans generally refer to the same concept—providing funding to purchase a boat. However, when the boat itself is used as security for the loan, the agreement becomes a marine mortgage.
- Do I need a deposit for a marine mortgage?
Yes, a deposit is typically required, and we offer marine mortgages with a minimum deposit of 20% (depending on circumstances). This is lower than many competitors who often require higher levels of deposit, usually based on factors such as boat age and type.
- What types of boats can I get a mortgage for?
Marine mortgages are available for a wide range of boat types, including narrowboats and wide beams (including for liveaboard use), sailing yachts, motorboats, RIBs and sports boats. The terms available may vary depending on the type and value of the boat, and these can easily be seen by selecting the relevant boat type on our online quote calculator.
- Can I finance new build boats with stage payments?
Yes, we are able to finance new build stage payments, which are made on your behalf according to the manufacturer’s agreed schedule. These can be for up to 80% of the total build price, or just a smaller top up amount if you decide to increase the specification during production.’
- Is there a maximum age of boat finance is available for?
We do not impose a maximum age limit on boats, unlike many other lenders who typically have restrictions (often 30 years old or less). As part of our assessment process, we require a full out-of-water survey to be conducted on the buyer’s behalf by a qualified marine surveyor. Our lending decision is then based on the findings of that survey.