New and used Sailing Yachts, Motor Yachts and Powerboats can all be financed on a variety of products depending on the end users personal requirements.
In most cases a marine mortgage is arranged for the purchase with security being taken over the vessel we are financing. The most popular options are.
Variable Rate
The mortgage is linked to Bank of England Base Rate. With this method capital is normally repaid monthly and interest is charged on the outstanding balance. The great advantage with this product is that lump sum payments can be made during the agreement greatly reducing the term and the amount of interest being charged.
Balanced Payment Plan
Often Customers opt for a variation of the above product called Balanced Payment Plan where a fixed payment can be calculated. This allows the Customer to take advantage of a variable rate product with a budget payment that they are comfortable with. If interest rates rise over the period of the loan the agreement will extend, alternatively if they decrease the agreement will finish earlier.
Balloon Payment Option
The Customer also has the option to defer part of the cost of the vessel as a balloon payment due at the end of the agreement. This greatly reduces the amount of the monthly payment making the purchase more affordable, however equity in the vessel at the end of the agreement is reduced.
Please contact us to discuss further or for information relating to deposits repayment periods and procedures.