Beautiful Boats are no Longer Just a Dream
There are many independent finance companies and banks which will provide boat finance. For larger, luxury boats the finance will be most probably be a secured loan, which means that the boat’s value will be used to secure the loan and subject to meeting the finance company’s criteria will enable a dream boat to be brought within a short time.
The repayments will be discussed and the Typical Approved Rate (APR) of interest can either be fixed or fluctuate depending on the type of loan taken. Principally boat finance is not dissimilar to a loan for a luxury car, the terms and conditions of the finance will be discussed and agreed between the creditor and the buyer. Many secured loans are also dependant on whether the person seeking the boat finance is a home owner, as not only will the value of the boat be used as security but also the person’s home. If repayments of the agreed monthly amount are not kept up both the boat and the home can be repossessed to pay back the owed monies.
Many of the larger boat finance companies offer a payment protection plan, this is a type of insurance policy which insures the applicant or joint applicants against unexpected financial difficulties, such as becoming involuntarily unemployed or when unable to work due to accident or illness. Payment protection plans are not compulsory nor are they free, generally the monthly protection insurance is added onto the monthly boat finance repayments. While this will mean an increase in the amount of money which needs to be repaid each month, protection plans do offer peace of mind that should the unexpected happen the payments of the boat finance will be paid. Each insurance company has its own criteria for acceptance and on what it is prepared pay out on, so this needs to be carefully read prior to agreement.
The amount of money that can be borrowed for boat finance will be dependant on several factors, the two most decisive factors will be that the person is a home owner and have a regular monthly income, other factors might include age and any previous bankruptcy. Some finance companies will lend money for a boat if the applicant is not a home owner, however the interest rates on these are usually very high and the repayment terms are not always realistic.
Boat finance is the ideal way to have a beautiful boat for holidays and relaxation without having to save for years! Many boat finance companies charge set up commissions and fees so it is well worth shopping around for the best deals available.
Posted: under boat finance, boats.