Buying a boat appeals to different people for different reasons. The blue waters of deep seas, rivers, and lakes fascinate many of us. We like fishing, sailing, cruising, or even living on the high seas. All this is not feasible without a boat. Although considered as a luxury and beyond the financial reach of a large section of our population, we still dream of owning a boat. A boat loan in the UK makes the whole idea of owning a boat look much more affordable.
The capital required to purchase a boat might vary according to specifications of size, purpose, and facilities on board. The lending market today is swarming with offers that meet the borrower’s requirements for any boat.
Boat Loans in the UK can be of two types – Secured and Unsecured. Secured boat loans require collateral. The collateral can be the borrower’s home or the boat itself. In the case of an unsecured boat loan, the lenders give the boat loan without collateral. Unsecured boat loan, though it comes with a relatively higher rate of interest, frees the borrower from the risk of collateral repossession and is also available to tenants.
The most important fact to be considered while taking any boat loan is the interest rate it carries. The Annual Percentage Rate (APR) on any boat loan will depend on many factors. The credit history of a borrower, the value of collateral, the requested loan amount, the value of the boat, and the length of the repayment period, affect the APR on the boat loan. The typical APR’s on boat loans vary from 7.5 % to 16% depending upon the borrower’s financial condition and repayment history. The amount, which a borrower can get on a boat loan, also depends on the factors given above. Taking into account the repayment capacity, the value of the collateral, and credit history of the borrower, it can start from £10000, and can go up to £ 10, 000, 000.
When a borrower decides on the amount of his boat loan, he should take into account the service contracts for the boat and its insurance costs. The borrower should also take care that the boat loan includes the cost of the essential accessories. The vast amount involved in purchasing these services and equipment will be difficult to manage after a boat loan is taken, and without these, the borrower might not be able to use and enjoy his boat fully.
When a borrower starts looking for a boat loan, he is overwhelmed with numerous offers. The situation is quite confusing, and the unaware borrower is likely to get carried away by glitzy marketing campaigns. A discerned borrower, however, will make an informed decision by shopping around for a lender with the right offer. A boat loan with low-interest rates, minimum documentation, and low fees will be an ideal choice for most of the borrowers. An online lender is most likely to satisfy the condition of the best loan offers within the shortest possible periods. After deciding on the right lender, the formal process of applying for the loan begins. Most of the prestigious lenders offer online application facilities. Filling up an online application is the fastest and most convenient way of applying for a boat loan in the UK. Care should be taken that every detail asked by the lender is provided and the information is correct to the best of the borrower’s knowledge.
A well-planned and carefully chosen boat loan will provide the borrower with all the fascinating pleasures and riches of boating.