PROPERTY FINANCE SPECIALIST

Q Is it difficult to get finance for a houseboat?

A The allure of living on the water, as opposed to within the confines of traditional bricks and mortar, is strong for many people.

But getting finance to buy a houseboat can be a tricky affair. Lenders are understandably not too keen on the fact that you could literally sail off in your home, and consequently not pay back the mortgage they’ve lent you.

You’ll need to get a marine mortgage from a specialist lender. And there aren’t many of them, so it’s difficult to shop around for the best deals.

It may be a good idea to approach an independent mortgage broker who has experience in arranging marine mortgages, as they’ll know which lender is likely to be most suitable to your particular circumstances.

You will certainly need a deposit of around 20 per cent of the purchase price and you’re likely to have to pay a higher rate of interest than you would on a ‘normal’ mortgage.

Something else you should think about is the cost of buying a mooring, as the marine mortgage is intended to cover the cost of the boat, not where you moor it. While some houseboats are sold with mooring licences included, many aren’t. Mooring fees differ widely, with popular sites costing thousands of pounds in annual fees.