Raising Finance and Insuring Your Boat
How to Buy a Boat (Part 5)
Boats are a fairly expensive affair and you will need to make sure that you have raised the adequate finance before committing to a purchase. The most common ways of doing so is with a bank or finance company loan or mortgage. There are many risks and things to consider when it comes to borrowing money and you must make sure that you have thought it through thoroughly before taking any action.
Make sure that you don’t borrow more than you can afford to pay back monthly and gain a thorough understanding of the interest rates and hidden fees. You can borrow money in this way to pay for both a new boat and a second hand one but there is no guarantee that you loan application will accepted. They will often require the boat, registered to the UK Ship Register to secure the loan.
Any boat owner will need to have adequate insurance in order to protect their vessel, passengers on board and third parties. This should be the first arrangement you make on purchase of your boat and you should never risk heading out on the water without insurance. Make sure you use a reputable company and understand the details of the policy.