As the cost of traditional ‘bricks and mortar’ homes in the UK continues to rise, more people are turning to alternative living solutions. Over 15,000 individuals are estimated to live permanently on the UK’s rivers, canals, and coastlines. Whether you’re looking for a permanent residence or a weekend getaway, purchasing a canal or narrowboat can be an appealing and viable option. But how do you finance such a purchase?
Can I get a mortgage on a boat?
It is possible to get a mortgage for a canal boat, narrowboat, or other liveaboard vessels, even though they do not have a fixed address like traditional properties. Specialist lenders like Promarine Finance can offer tailored solutions to meet your needs. However, securing a boat mortgage involves meeting specific criteria such as:
- Monthly Income: Your ability to make regular payments.
- Buyer’s Requirements: Your intended use, such as living aboard or leisure.
- Credit Report: A good credit score helps in securing competitive rates.
- Deposit: The amount you can pay upfront, usually 20-30% of the boat’s value.
- Satisfactory Boat Survey: A marine surveyor assesses the boat’s condition and history.
Understanding Boat Mortgages
A boat mortgage has many differences compared to a traditional home mortgage:
- They are designed to accommodate mobile assets, including narrowboats, canal boats, and wide beam boats.
- Lenders consider the specific risks and usage that come along with boat vessels.
- Boat policies often mandate that the boat be fully insured and registered.
Promarine Finance and other specialist lenders are aware of these nuances and can tailor-make finance for boat buyers.
Types of Boats Promarine Can Finance
Promarine Finance specializes in providing loans for various types of vessels. Here are the boat types that can be bought with financing, whether you’re buying for fun, work, or adventure:
- Narrowboat Mortgages: Ideal for anyone who wants to travel through the UK’s picturesque canal systems in a small, classic boat.
- Canal Boat Mortgages: Designed for exploring or living on canals, offering more space than narrowboats for added comfort.
- Wide Beam Boat Mortgages: Perfect for people who need more space for long-term residence or opulent leisure travel.
- Liveaboard Boat Mortgages: This is for vessels that are used as a residence throughout the year, offering financial options for alternative living.
- RIB (Rigid Inflatable Boat) Mortgages: RIBs are appropriate for fast, sturdy boats that are frequently used for sports or quick trips.
- Motorboat Mortgages: For multipurpose, motorised boats used for fishing, long-distance transport, or leisurely cruises.
- Sailboat Mortgages: Designed specifically for wind-powered boats, ranging from small dayboats to bigger yachts used for international trips.
Steps to Secure a Narrowboat or Canal Boat Mortgage
- Choosing a Lender: Decide between a traditional bank or a marine finance specialist like Promarine Finance.
- Determining Eligibility: Provide details such as income, credit score, and intended use of the boat.
- Conducting a Boat Survey: Ensure the boat meets the lender’s requirements.
- Submitting an Application: Promarine offers online and phone application options for your convenience.
- Approval and Financing: Once approved, secure your boat mortgage and move forward with the purchase.
For more detailed guidance check out the Promarine Finance Boat Buying Guide for more information on making your boat purchase.
Why Promarine Finance to get boat mortgage on a canal, narrow, wide beam, or liveaboard boat?
Promarine Finance makes getting a boat mortgage simple. Our personally tailored marine mortgages can meet your requirements — whether you have the cash to buy a boat outright, or want to keep some of your savings. Applications can be started online or over the phone by speaking with any one of our knowledgeable team.
Promarine Finance is one of the most well-established marine finance lenders in the market. With more than a decade of experience, we are one of just a few lenders that specialise in financing liveaboard vessels
So, now you know it can be done — why not find out if you’re eligible for marine finance? To find out more about our affordable boat mortgages, visit our website and get a quote.
Frequently Asked Questions (FAQs) About Narrowboat, Canal, and Widebeam Boat Mortgages
Can You Get a Mortgage on a Boat?
Yes, specialist lenders like Promarine Finance provide boat mortgages for narrowboats, canal boats, as well as wide beam vessels and can also provide knowledge and support all the way through the process.
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 here.
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