Financing a yacht in Europe: marine mortgages and leasing
A marine mortgage lends against the boat itself. Leasing lets a business use a boat with a purchase option. Both need the paperwork in order first.
Updated 2 min read
Key points
- Lenders want a down payment, a survey and clear title. The share they lend depends on the lender, the boat and its age.
- The mortgage is registered against the boat, and it must be cleared before the boat is sold.
- Get at least two written offers and compare the total cost over the whole term as well as the monthly payment.
Two products
- Marine mortgage or boat loan. You buy the boat and borrow part of the price. The lender registers a charge against the boat. You repay over a fixed term.
- Leasing. The lender buys the boat and leases it to you for a fixed term, usually with an option to buy at the end. It is often used by companies.
What lenders ask for
- A down payment from your own funds. The share varies by lender, boat type and age, so ask each lender.
- A recent survey by a qualified surveyor. See Why you need your own pre-purchase survey.
- Proof of the source of funds and your income. See Proof of funds and anti-money-laundering checks: what to expect.
- Insurance in the lender's favour for the full term. See Marine insurance: cruising limits, agreed value, winter storage.
- Clear title and the right registration. See Checking ownership.
Many lenders set an age limit on the boat or a maximum term that shortens as the boat gets older. A 25-year-old boat can be harder to finance than a 5-year-old one.
How the mortgage works in practice
The lender registers its interest in the register where the boat is entered. While it stays there, you cannot sell the boat with clean title until you repay. At the sale, the buyer's money first goes to the lender, and the lender releases the charge. See Closing, paying off finance and de-registration and Liens, mortgages and encumbrances.
Compare offers properly
- Ask for the total cost over the whole term, in euros.
- Check whether the rate is fixed or variable.
- Ask about arrangement fees, valuation fees, registration costs and early-repayment charges.
- Check what happens to the interest if you sell after 3 years.
Leasing for companies
A lease changes how the boat appears in the accounts and how VAT is handled. The effect depends on how the boat is used and registered. A tax adviser must review the structure before you sign. See Who should own the boat? Private, company or co-ownership.
Related guides
General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.