Do you dream to drive a boat of your own exploring the vast sea? If yes, then you can choose a powered speed boat to a narrowboat from a houseboat to a smaller cruiser, whichever water-craft you wish to own. But do you have the money to buy it? If yes, then everything seems to be in the right place. But, if it is the other way round, then you are in big trouble. How will you buy your dream boat? You need not panic; boat loans are here to help you realize your dream to own a boat.
For some, a boat is a passion, and for others, a luxury item. Boat loans are specifically designed to cater to the need of UK residents who wish to buy a boat. Boat loan makes the idea of owning the boat look much more accessible and affordable. It is very similar to a car loan.
A boat loan can be approved quickly and easily. Boat loans are available for any amount ranging from £10, 000 to £10,000,000 taking into consideration the repayment capacity, value of the collateral, and credit history of the borrower.
There are two types of boat loans – secured and an unsecured boat loan. A secured boat loan is secured against the collateral home or the boat itself, and this loan is available at a low-interest rate with flexible repayment options. An unsecured boat loan is not secured against any collateral. Though it is offered at a high rate of interest, the borrower is on the safer side as his property or boat is not at risk. Tenants can also apply for this loan.
One should also give utmost care to the rate of interest on the loan. Annual Percentage Rate or APR is another name for the interest rate. APR of a boat loan ranges from 7.9% to 16%. A little search on your side can help you find boat loans at cheaper rates.
A borrower needs to decide the type of loan that will work best for you. There are fixed as well as adjustable-rate loans. Fixed-rate loans involve fixed monthly payments by the borrower. The rate of interest is decided at the beginning of the loan, which continues until the end of the loan term. This type of loan is best suited for people with fixed and regular income.
An adjustable-rate loan implies that the rate of interest varies with the market rate of interest. It is suitable for people whose monthly income is not fixed, such as business entrepreneurs.
Identify the fees associated with the boat loan. It involves various kinds of loans such as processing, underwriting fees, appraisal fees, the cost of a credit report, commitment, wire transfer fee, dockage fee, and many others.
There were limited boat loan providers in the past. The internet has revolutionized the whole finance market with the entry of online lenders. It has become very convenient for a borrower to apply for a loan saving his time and efforts. One can access an infinite number of online lenders at the same time through the internet. It is easy to apply for a loan online. Few clicks on the website, filling the online application form and you are through with the loan process. The application is easy, and privacy is ensured. But don’t relax. Just a simple effort from your side can help in saving hard-earned money. Collect loan quotes from various lenders and compare them. This will ensure that you get the best boat loan deal.
You may dream of sailing around the world. Boat loans can work as an essential source to realize your dream. Before signing the loan contract, make sure you compare all aspects of the boat loan and not just the interest rate.