A loan afloat

By THIS IS MONEY
Updated:

 

I want to buy a houseboat in Shoreham, West Sussex, with my girlfriend for £55,000. I already have a house in Manchester with a £20,000 mortgage on it. My girlfriend and I need a loan of £27,500 each as we each have £5,500 as a deposit. I've heard lenders refuse to give mortgages on houseboats. Is this true and How can I fund the purchase without one?

JP, Brighton.

Mortgage broker Chase de Vere confirms that mortgage lenders do not cover houseboats. The magazine 'Waterways World' recommends contacting Collidge & Partners in Margate, Kent.

Senior partner Chris Collidge says: Under our scheme (and we know of no other in the UK) you can borrow up to 80% of the purchase price or 80% of a surveyor's valuation of the vessel, whichever is the lesser. The vessel must be on an inland waterway (ie, river, canal or estuary) and must be unable to go to sea, have residential/mooring agreement, and must be insured with the lender's interest noted.

Loans on houseboats are similar to HP deals and are usually over a ten year term. You pay a fixed, flat rate and there are no extra fees to pay. Currently our rates are currently between 8%-10.5% depending on how much you borrow but rates are subject to change. You'll need an out-of-water survey and valuation by an independent qualified marine surveyor.

You cannot have two loans secured on one vessel so you and your girlfriend would have to agree to have a loan in joint names.

More details from Collidge & Partners on 01843 295 925.

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