Financing a new boat

Boat buyers have many choices when it comes to paying for their new boat. Marine finance is available from high street banks, specialist lenders and via brokers.

Marine Finance

A Marine Loan is ideal for buying smaller boats, refitting, or purchasing extra equipment.

• Marine Mortgages tend to be used for purchasing boats with a value £3,000+, and can normally be up to 70% of the value of the boat. 
• The small boat market is often a starting point for many newcomers and finance is available  for vessels with loans of up to £25k using a fixed rate marine mortgage facility over periods of up to 60 months.
• For boat loans ranging from £25k upwards the marine mortgage facility is usually a variable rate and is usually over a period from 5 to 10 years.

VAT (Value Added Tax)

Most new boats are subject to VAT (at the standard rate), but there are a few exceptions:

• Houseboats that have a fixed mooring.
• A boat that is of a gross tonnage of not less than 15 tons AND which is neither designed nor adapted for use for recreation or pleasure. HM Revenue & Customs now accept that boats over 15 tons which are going to be used as your private residence qualify under this definition and as such are zero rated to you if you purchase them now.
• A boat that you intend to take to another EC country, however VAT at the standard rate will be due in that particular EC country.
• A boat that you intend to take to a country that is outside of the EC. However it should be noted that VAT would be due if the boat is bought back into the EC for permanent moorage.

For advice on buying your boat, contact the Insurance, Financial & Legal Services Association. The IFLSA is a Group Association of the British Marine Federation, representing businesses from the Insurance, Financial and Legal fields of the Industry, who provide services to private and commercial boat owners.

If you have any questions, please email us info@onthewater.co.uk

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