Using Collateral to obtain a mortgage

brocher7

Hi, im trying to buy my first house,I dont have much of a deposit at the moment to speak of but I do own a commercial Fishing boat that is valued at £60K.
Does anybody know if my fishing boat can be used as collateral and taken into consideration when applying for a mortgage with a bank??

Wutang_2

brocher7 wrote: »

Hi, im trying to buy my first house,I dont have much of a deposit at the moment to speak of but I do own a commercial Fishing boat that is valued at £60K.
Does anybody know if my fishing boat can be used as collateral and taken into consideration when applying for a mortgage with a bank??

no - unless you sell it and use the cash-money.

Thats a top fishing boat eh? Do you catch commercial fish only?

Trollfever

Check out Marine Finance.


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Senior_Paper_Monitor

A residential mortgage lender will simply want you to provide a cash deposit - they will not consider 'collateral in any form' as an alternative.

You could almost certainly raise a loan against the boat as collateral - many brokers will be able to arrange this in addition to the mortage if they have a suitable commercial lender on their panel (or most banks will probably consider this).

How your boat ownership (and any loan against it) and operation is structured will establish whether the loan will directly impact on the level you may borrow for the mortgage.

brocher7

Wutang wrote: »

no - unless you sell it and use the cash-money.

Thats a top fishing boat eh? Do you catch commercial fish only?

Wutang, its a commercial trawler/longliner, I catch and sell whatever I can.

Also the boat is fully paid and 100% owned by myself.