NEW VS USED

It usually costs the same to finance purchase of a new boat as it does a used boat of the same value. The lender or broker will offer an interest rate, specify thae deposit and take the monthly repayments in exactly the same way. The only caveat is that some lenders want the boat to be no older than 25 or 30 years at the end of the mortgage period. So, if you’re buying an older boat, you may find you get shorter terms with correspondingly higher monthly repayments.

The bigger differences lie in the buying process. When buying new, it’s easier to prove title because there has been no previous owner and no previous mortgage. For used boats, you’ll have to show ownership records going back at least five years. That could mean multiple bills of sale. The purpose of these checks is to ensure the boat really does belong to the seller, and to ensure that no other lender has a charge over the boat.

It is harder to get finance on private sales, although the RYA’S model sale agreement does reduce the risk somewhat. Used boats will also always require a survey to ensure they’re worth what you’re paying for them, and that means lifting the boat out of the water (expect costs from £400 to £1500, depending on the boat’s size and build). You also need to budget for higher insurance and maintenance costs for older boats than new.

Many lenders then register the mortgage with the MCA, which can cost from £153 to £700, depending on solicitors’ charges. So while a loan decision can sometimes be made in a matter of minutes, it usually takes 3-6 weeks for the sale process to run its course.