Marine Mortgages...
PsiMan
I am thinking of adding to the trillions of £ of debt this country's
inhabitants are in by getting a mortgage to pay for a boat. Does anyone
want to put me off the idea? I'd be interested in constructive comments from
both angles and some details of experiences with providers that people have
had. I've been looking at Barclays and Bank of Scotland, but I expect there
are more if you know where to look...
Cheers
Simon
Ronald Raygun
> I am thinking of adding to the trillions of £ of debt this country's
> inhabitants are in by getting a mortgage to pay for a boat. Does anyone
> want to put me off the idea? I'd be interested in constructive comments
Compare marine with domestic mortgage rates. Chances are, if you
have enough equity in your house, that it'll be cheaper to raise
the money on your house, and buy the boat or cash, than to use a
marine mortgage.
Duncan Heenan
"PsiMan" <sim...@nospamcontemi.co.uk> wrote in message
news:108fb1j...@corp.supernews.com...
If you have to borrow to buy a boat, make sure you get the most
comprehensive insurance you can, and stay within its limitations. Otherwise,
you could find yourself with no boat one day, but still a big debt.
Keelworm
A caclulation I have done recently and thus can confirm it is accurate.
PG
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Graham Frankland
news:c6ajkp$2s2$1...@hercules.btinternet.com...
> Ronald Raygun wrote:
>
> > PsiMan wrote:
> >
> >> I am thinking of adding to the trillions of £ of debt this
country's
> >> inhabitants are in by getting a mortgage to pay for a boat. Does
anyone
> >> want to put me off the idea? I'd be interested in constructive comments
> >
> > Compare marine with domestic mortgage rates. Chances are, if you
> > have enough equity in your house, that it'll be cheaper to raise
> > the money on your house, and buy the boat or cash, than to use a
> > marine mortgage.
>
> A caclulation I have done recently and thus can confirm it is accurate.
>
your mortgage - possibly 25 years, rather than only 5 or 10 years on a loan?
Graham.
Ronald Raygun
No, of course not, but you wouldn't necessarily do that.
If you took a loan, secured with a marine mortgage, designed to be repaid
over 5 to 10 years, at a high rate of say 8 or 9%, this would cost you a
certain monthly amount, call it X.
If instead you added the same amount to your house loan, which is charged
at perhaps 5 or 6%, and were to increase your monthly payments by said X,
then by the time the 5 or 10 years are up, you would have reduced your
house loan to less than you would have done had you not added the boat
debt to it.
As always, one needs to be astute in these matters and make the most
appropriate tradeoff between minimising on the one hand the size of
one's monthly outgoings, and on the other hand the duration involved.
Chris Newport
This is all very nice until something goes wrong, such as becoming
unemployed. Putting your house on the line to buy a boat could end
up being a rather bad move.
A separate boat mortgage means that, in extremis, you can stop paying
for the boat and put it up for sale. The lender will usually be patient
if the broker tells them that it will sell reasonably fast for more
than they are owed. In the worst case they could grab the boat.
OTOH, if you have increased your house mortgage you will have to keep
up with the increased payments or sell the house. Unemployment usually
happens during an economic downturn when house prices fall and leave
you in negative equity. BAD IDEA.
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Ronald Raygun
> On Thursday 22 April 2004 1:20 pm in uk.rec.sailing Ronald Raygun wrote:
>>
>> Compare marine with domestic mortgage rates. Chances are, if you
>> have enough equity in your house, that it'll be cheaper to raise
>> the money on your house, and buy the boat or cash, than to use a
>> marine mortgage.
>
> This is all very nice until something goes wrong, such as becoming
> unemployed. Putting your house on the line to buy a boat could end
> up being a rather bad move.
I doubt it.
> A separate boat mortgage means that, in extremis, you can stop paying
> for the boat and put it up for sale. The lender will usually be patient
> if the broker tells them that it will sell reasonably fast for more
> than they are owed. In the worst case they could grab the boat.
Wrong. In the worst case they can grab the boat, auction it off
for much less than you still owe them, and still pursue you for the
rest. This may, depending on your circumstances, ultimately force
you to sell your house even though it's not mortgaged to them.
The fact that the boat is mortgaged simply makes it easier for the
lenders to get their hands on it. It doesn't mean they can't get
their hands on your house, or at least put you in an impossible position
such that you will decide selling the house is the least bad option.
> OTOH, if you have increased your house mortgage you will have to keep
> up with the increased payments or sell the house. Unemployment usually
> happens during an economic downturn when house prices fall and leave
> you in negative equity. BAD IDEA.
But things would have gotten bad for you *sooner* in such economic
downturns had you gone for the more expensive marine mortgage. And
you still have the boat to sell, though admittedly it might take
longer to shift in an economic downturn affecting everybody.
Dennis Pogson
Drop a wee note to Roman Abramovich, care of Chesea Football Club,
explaining your predicament. Or better still, ask your wife for a loan, and
if she ain't got it, look for someone who has.
Remove "nospam" from return address.
Bedouin
As others have said - don't do this unless you are absolutely sure it is the
cheapest way of financing the boat (which is highly unlikely).
If you are a home owner then a loan secured against your house likely to be
much cheaper and more flexible. The only circumstances in which this might
not be the case would be if the amount borrowed against the house comes near
to the value of the property
John
important as any that have been in this n.g. There are millionaires in here
.....and then there are the rest of us who want a decent boat to sail in but
don't earn vast sums every week. We have to finance our dream, one way or
another.
J.H.
"Dennis Pogson" <dennisnos...@ntlworld.com> wrote in message
news:GdKic.26$P43...@newsfe1-gui.server.ntli.net...
Nick Temple-Fry
needs and our budget.
I suggest what anyone who finds that they can't afford a cruising yacht
needs to do is read Maurice Griffiths various titles. The sea hasn't changed
that much, nor have the needs of the human body.
We don't need 'full standing headroom', pressurised water systems, showers,
bow thrusters, electric windlasses, point and click navigation systems (all
sold with the caveat that they are not be used for navigation purposes),
multi burner cookers with ovens, on board televisions/computers/Hi fi
systems.
To sail the UK/continental waters you do not need a 40ft+ boat, something in
the range of 22 - 28ft is easily sufficient - and that size of boat if
carefully selected will take you round the world.
"John" - I may be doing you a disservice, but the concept of a 'decent'
yacht has tickled my prejudices.
Nick
"John" <nova...@momo63.freeserve.co.uk> wrote in message
news:c6jtlc$lsr$1...@news6.svr.pol.co.uk...
TonyB
> needs to do is read Maurice Griffiths various titles. The sea hasn't
changed
> that much, nor have the needs of the human body.
>
> We don't need 'full standing headroom', pressurised water systems,
showers,
> bow thrusters, electric windlasses, point and click navigation systems
(all
> sold with the caveat that they are not be used for navigation purposes),
> multi burner cookers with ovens, on board televisions/computers/Hi fi
> systems.
>
> To sail the UK/continental waters you do not need a 40ft+ boat, something
in
> the range of 22 - 28ft is easily sufficient - and that size of boat if
> carefully selected will take you round the world.
I do agree with you Nick. As the owner of a 22 footer I have a cooker which
I have never used, a manual bilge pump and a manual water system. An
Outboard is simple and allows a fouled prop to be freed off easily. I don't
much sail in winter so cold food and drinks are adequate. I do find that the
more technology there is on the boat the more there is to maintain and worry
about.
In time I'll probably move on to something bigger with an inboard and a
shower and all that jazz, but se against that is my longing to go back to a
simple dinghy which was easy to move around places, cheap to repair and
insure etc etc.
The trouble with sailing is that it's all a compromise!!
TonyB
Keelworm
> As always, one needs to be astute in these matters and make the most
> appropriate tradeoff between minimising on the one hand the size of
> one's monthly outgoings, and on the other hand the duration involved.
Errmmm, yeah... What 'e said! ^^^^^^^
;o)
PG
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Pete Verdon
> As the owner of a 22 footer I have a cooker which I have never used,
<snip>
> I don't much sail in winter so cold food and drinks are adequate.
But, but, no tea?
:-)
Pete
martin
Just G&T? :-)