With UK house prices continuing to rise, more people are turning to alternative ways of living and living on a boat is becoming an increasingly popular choice. Today, over 15,000 people are thought to live afloat full-time on the UK’s rivers, canals, and coastlines. The rise of staycations also makes a boat the perfect solution for weekend escapes and holiday adventures. Whether you’re looking for a floating home or a peaceful getaway, life on the water offers freedom and affordability, but how do you make the switch to living afloat?
Can I get a mortgage on a boat?
While a canal or narrowboat isn’t necessarily a traditional property with a fixed address, it is possible to get a mortgage from a specialist lender. As with any mortgage or loan, there are a number of criteria that must be met. This will include:
- Monthly income and affordability
- Satisfactory credit report
- Deposit
- Satisfactory ownership documents
- Full out of water survey
Narrowboat and Canal Boat Mortgages
Obtaining a mortgage for a narrowboat or canal boat is very different to getting a mortgage for a house. Firstly, although both are actually assets, a boat is a movable personal asset, not a fixed property. Therefore, most of these types of loans will usually be financed through a marine mortgage, but this is something different to a property mortgage, since the ‘security’ is the boat, not property.
Lenders who deal with narrowboat or canal boats will likely request more information about the condition of the boat, survey history, and more about what the boat will be used for (i.e., residency v leisure, continuous cruising v static mooring) than what the average mortgage lender would ask for without differentiating.
Some of the elements that may affect the eligibility, and terms are the age of the boat, what it is made out of, and even the boat engine. It is essential that you understand what to expect from the application process to avoid disappointment or unnecessary complications. To read a more general overview of how marine mortgages work, please read our Beginner’s Guide to Marine Mortgages.
Types of canal boats and liveaboards Promarine can finance
Promarine Finance specialises in offering marine mortgages and boat loans for a wide variety of vessels. Our marine mortgages are available for a wide range of different boat types, below is more info on the various types of canal boats and other vessels which may suit liveaboard use:
Canal Boats:
Narrowboats, wide beams, and Dutch Barges are primarily used on inland waterways and are often used for living afloat.
Houseboats:
Whilst these do have more restrictions, we are still often able to offer finance for modern specialised houseboats such as waterlodges and other floating homes.
Other Liveaboard Vessels:
If exploring the coast and setting sail are part of your plan for life afloat liveaboard mortgages are still available.
Whether you are looking at living on a sailing yacht or motor cruiser we can help, as we understand a living afloat can be a unique and varied way of life. So if you want to live on a boat we are here to help with a fast, flexible, and personal mortgage process.
Steps to secure a narrowboat, widebeam, canal boat, or other liveaboard boat mortgage
- Choosing a Lender: Decide between a traditional bank or a marine finance specialist like Promarine Finance.
- Submitting an Application: Complete an online form and provide details such as income and intended use of the boat.
- Approval and Financing: Once approved, secure your boat mortgage and move forward with the purchase.
- Conducting a Boat Survey: Ensure the boat meets the lender’s requirements.
Budgeting for Boat Ownership
When you own a boat, you experience a great deal of pleasure, however these pleasures come with ongoing financial costs, and these costs exist beyond just your mortgage repayments. Knowing what will be the ongoing costs means you will enjoy your investment through regular use and care.
Monthly Costs: Includes things like, berth fees or marina fees (excluding cruising), licensing and registration fees (Canal & River Trust, Environment Agency, or Harbour Authority), consumables (fuel, pump outs, day to day usage etc.).
Maintenance & Repairs: Like any asset, boats need to be maintained regularly. Bi-Annual engine servicing, hull maintenance (antifouling, polishing etc.) regularly replacing consumables or wearing parts that become worn etc. It would also be wise to budget for planned maintenance and unexpected maintenance.
Insurance: You should get marine insurance. Of course, insurers have their own guidelines on what a standard cover means. Standard cover will generally include damage to your boat, third-party (important for any use in a waterway), and personal belongings you have on-board. The lender will want to ensure that you have specified cover as part of your mortgage.
Safety Checks: Depending on the type of boat and what you are using it for, you may need to pass safety checks on a regular basis. In the UK this would mean having a Boat Safety Scheme (BSS) certificate and related periodic costs.
Why choose Promarine Finance to get boat mortgage on a canal, narrow, wide beam, or liveaboard boat?
Promarine Finance makes getting a boat mortgage quick and easy, even if you want to liveaboard. We have been helping buyers begin their lives afloat for over a decade, and are one of very few lenders that offer financing for narrowboats and other liveaboard vessels. Our marine mortgages are designed to meet your personal requirements, so whether you are buying for leisurely cruising or buying a floating home, we can help. Our online calculator gives instant access to finance examples, and you can apply online as soon as you are ready, or call our knowledgeable team for more info.
So, now you know it can be done, why not check out some figures with our online calculator, or apply to find out if you’re eligible for marine finance?
Frequently Asked Questions (FAQs)
How much deposit is needed for a boat Mortgage?
Most lenders require a minimum deposit of 20%, depending on the boat’s value and condition.
What is the interest rate on a boat mortgage?
Interest rates vary based on your credit score, income, and the type of boat. Rates are typically higher than traditional property mortgages due to the unique nature of marine finance. Calculate your boat mortgage with our boat loan calculator.
How much does a narrowboat cost?
The cost of a narrowboat depends on factors such as size, age, and condition. On average:
- New Narrowboats: Prices start at £60,000 and can go up to £150,000 depending on the size, style, and features you choose.
- Used Narrowboats: These typically range between £30,000 and £80,000.
Keep in mind that additional costs, such as insurance, mooring fees, and maintenance, will also impact your budget.
What is the cost of living on a narrowboat?
Living on a narrowboat can be more affordable than traditional housing, but it comes with its own set of expenses:
- Mooring Fees: Typically £3,000-£18,000 per year, depending on location.
- Maintenance Costs: Annual maintenance, such as engine servicing, can cost £1,000-£2,000.
- Fuel Costs: Budget approximately £500-£1,000 annually, depending on cruising frequency.
- Insurance: A fully comprehensive insurance policy is a must, with costs averaging £200-£500 per year.
- Boat Safety Scheme (BSS) certificate: every four years for around £180