Promarine Finance introduces variable rate marine mortgages to combat increasing interest rates

In a bid to continue to offer affordable marine mortgages during the ongoing cost of living crisis in the UK, Promarine Finance has introduced a new repayment plan. 

Since its launch in 2010, Promarine Finance has been offering fixed-rate marine mortgages to customers all over the UK. These affordable loans, usually spanning 10 years and occasionally a little longer for new-build boats, help boat lovers purchase the vessel of their dreams. 

As the ongoing cost of living crisis continues to impact businesses and individuals, boat lovers and marine mortgage lenders like ourselves are among those affected by increasing interest rates, vessel value, and additional boating costs. 

Whether you have been saving for the boat of your dreams or want to get on the property ladder via a liveaboard, a marine mortgage enables you to put down a deposit and pay back a monthly loan, while being able to make the most of your new purchase. 
Recently the UK’s Bank Rate, which determines the interest rate and influences bank charges, has seen a substantial increase. So what does this mean for boat buyers and all types of lenders?

Fixed rate vs variable rate

Typically, a fixed interest rate marine mortgage gives customers peace of mind, providing a known monthly budget and Promarine add a benefit of a ‘no penalty’ early settlement option. While interest rates are volatile, lenders offering fixed rate loans must factor in potential future increases to interest rates. 

Variable rates, on the other hand, operate in a similar way to traditional house mortgages. When interest rates rise, so does your repayment as a result. This can be challenging for customers as they have little control over the cost of their monthly payments. 

Both have their advantages and disadvantages. So, we have come up with a solution.

Promarine Finance’s variable rate repayment solution

Promarine Finance is introducing a new variable rate repayment option for buyers that enables us to price without the interest rate risk. Instead of increasing the monthly repayment, we will increase the repayment period. In turn, customers can stay on top of their monthly payments, and when interest rates are lowered, the repayment period is reduced.

Variable rates are quoted on all loans over £50k.

With each variable rate offer, Promarine Finance will also quote for a fixed rate option. Our standard no penalty for early settlement still applies on our variable rate deals and at the outset you can choose whether to change the payment or the term.

Promarine Finance is a leading provider of marine finance. To find out if you’re eligible, get a quote today.

No need to wait to sell your boat before buying your next – the benefits of bridging finance

The Promarine Finance team have recently been working with a valued customer who wanted to achieve his dream, by changing his boat to move from inland canals to touring the British coastline. The customer had spotted his ideal boat, but needed to sell his existing boat first – or so he thought.

To help customers in similar situations, we have come up with a solution to provide short term marine finance – ‘Bridging Finance’ for boats that are interest only.

We gave our customer a loan for their new boat and a separate bridging loan secured on both boats – with the view to settle once his existing boat sells.

This allowed him to get the boat of his dreams and win it against a cash buyer because of the bridging facility.

Have you negotiated a spectacularly good deal for a boat that you just cannot walk away from, but are still waiting to sell your current boat?

You don’t need to lose the boat!

Speak to our team – we can agree a monthly interest payment for a set term and the full amount is repaid once your funds are available. If the term needs to extend, then the deal rolls forward for a set period.

Our delighted customer is now planning for his tour of the British coastline and we were really pleased to help.