Marine Mortgage Versus Personal Loan

We are often asked what is the difference between a marine mortgage and a personal loan and most of the time the answers are technical and may seem to offer little difference.

Well we have just seen a classic example where a customer coming to us via our website wanting to buy a £20k boat advertised for sale ebay. A personal loan would have been a simple choice, deal done no questions asked.

Our approach was rather more involved taking less than 24 hours and our customer has chosen to buy a different boat from a reputable broker.

On looking at the boat documentation with a well know marine surveyor, Nick Vass of Omega Yacht Services , we were not able to contact the company who had previously owned the boat which was a company from a tax haven, the person selling the boat was not the organisation that had purchased it and it is now registered in a different name again. Not as obvious as you may immediately think because there were connections and part viable explanations. But not 100% water tight.

VAT also needs to be considered because the boat had been sold from a company registered in a tax haven. Is the boat being sold VAT paid? There needs to be documentary evidence.

All in all a risk not worth taking and one which a reputable broker would not try to pass on. Hence an auction site might appear an attractive source for cheap boats. Boats are not so cheap if they are not as they appear and the VAT man later decides to take an interest.

Our customer is now speaking with one of our regular brokers, viewing the boat at the weekend with a survey scheduled shortly after. All being well they will have their new boat before Easter.

Upgrading to a better boat

Our customer signed up to a 10 year mortgage with us in 2014. Since then he has changed his boat 3 times! Mr P found that the way he used his boat was evolving so it made sense to him to upgrade but only if the new deal could be financed and was affordable.

Our flexibility has allowed Mr P to upgrade to better boats with ease; the latest being a Fairline Targa 43. As an existing customer we approved the finance over the phone. We have several customers that we are currently upgrading. Promarine understands that circumstances change and that eyes can wander…we are here to help customers get exactly what they want!

Send us an email or call to find out how we can help you.

FCA rule for online financial promotions

The Financial Conduct Authority (FCA) controls direct finance activity between brokers and customers. It is now vital that brokers include the detail of their finance providers’ features on their websites.

As a finance provider, Promarine has been asked by boat broker partners to supply details of its finance features for inclusion on their websites. Promarine’s promotions fall within the FCA guidelines.

Stuart Austin, Promarine Director, commented “our lending is based around finding people that want to cherish their boat and then ensuring we help them to purchase what they can afford.”

Promarine Finance has often helped boaters purchase boats that fall outside the remit of the banks. Promarine will finance older boats, lend from as little as £3,000 and over a period of up to ten years. Typically Promarine will lend up to 70%.

Stuart added “most of our customers have a clear idea of the type of boat they want and the budget they can afford. Customers often choose to finance part of their boat purchase price, so keeping their savings in place for a rainy day. We are very happy to lend the minimum amount customers need to get the boat they want, at payments they can afford. Our online calculator helps to quickly get the ball rolling.”

Recent changes introduced by the FCA restrict licensed brokers to introducing Promarine Finance to customers that are limited companies or defined as “high net worth individuals.” All regulated customers must make their own arrangements.

Approval within 15 minutes

From new to older boats we can arrange loans from £3,000 over a period of up to ten years. We have successfully arranged finance for boats ranging from Sunseekers for leisure to live aboard canal boats. Here are a couple of our recent case studies.

Sunseeker Superhawk 50

Our customer Mr G, a self-employed gentleman, applied for finance on Tuesday 8 September at 2.45pm. We were able to confirm acceptance 15 minutes later!

Mr G was keen to have his boat by Saturday. Despite the pressures of the Southampton Boat Show, Sunseeker and Promarine pulled together and Mr G took delivery of his beautiful boat on Saturday. Thank you to Sunseeker for working with us to help make Mr G’s weekend!

Canal boat living

Miss B is a recently qualified medical professional, moving to take up her first hospital post. We received Miss B’s proposal from our broker and were able to issue an acceptance and confirm that the deal could go ahead within 15 minutes.

Boat ownership is an affordable and practical way for people to settle in a new area. We are particularly keen to support our young medics and are happy to have been able to help Miss B relocate.

The canal boat industry is pleased to find Promarine do not require boaters to have residential moorings, meaning all boaters are able to cruise continuously.

Inland vessels – canal boats and river cruisers

The canal boat industry is pleased to find Promarine do not require boaters to have residential moorings meaning all boaters are able to cruise continuously and live aboard.

We are also financing new build vessels with stage payments.

Stuart Austin, Director of Promarine explains how his company differs from main stream lenders

“We became involved with marine finance because of our personal interests in sailing and we recognise the passion and importance of owning a boat. A boat can easily become a family member and much cherished”

Stuart continues, “our lending is based around finding people that want to cherish their boat and then ensuring we help them to purchase what they can afford”.

So far Promarine Finance has helped lots of boaters purchase boats that often fall outside the remit of the banks. Promarine will finance older boats providing they survey satisfactorily, will lend lower values from £3k upwards and over periods of up to 10 years. Typically Promarine will lend against 70% of the value of a boat.

Stuart adds “most of our customers have a good idea of the type of boat and budget they can afford, but often they choose to finance only part of the boat purchase price, so keeping their savings in place for a “rainy day” scenario. We are very happy to lend the minimum amount customers need to get the boat they want and at payments they can afford. Our website has an online calculator and enquiry form to quickly get the ball rolling.”