A loan for a houseboat

Serafina

I'm hoping MoneySaving members might be able to offer me some advice. I apologise up front as it's a long story.

Over the past few years I've been thinking about buying a houseboat on a residential London mooring as an alternative way to own my own home without a mortgage etc. I've done a lot of research over the years, spoken to numerous people that have done it and visited cities such as Amsterdam and Copenhagen where it is more acceptable. I've always been thinking along the lines of a large stationary houseboat in a good area rather than a narrow boat. My main motivation has been to have something that is completely mine in a few years rather than having a huge financial commitment for the rest of my life. After many years in and out of higher education, a failed married and lots of travelling I've left the whole settling down thing a bit late.

Anyway last July I fell in love with a beautifully designed houseboat. I committed to buy it but was aware I would not be able to take delivery for a few months as people were living on it and the seller was having a new boat built to replace it. I secured a residential mooring to rent a few miles down river and waited for the exchange. I had the cash or rather would have when the time came but knew I would need to do between 15 - 20k worth of renovation. I called my bank to enquire about a personal loan (I told them it was a boat but not a houseboat) and had 15k over 3 years @ 7.4% approved immediately. I was told I would need to go into a branch and sign the paperwork within 2 weeks to draw the money down into my account. During those two weeks I found out the seller did not want me to pay in full for the boat until the exchange. I called the bank and told them that I wouldn't need the money until Nov. They said they would probably keep it on file. Over the next few months I set up organising things to move onto the boat. Sold everything I wouldn't need, gave notice on my rented flat etc. A week before the exchange the seller tried to hit me for almost 30% more money which he described as moving costs, something that had never been agreed or documented in the original contract. I refused to pay; they dropped the extra charge to 15%. I felt so compromised that I agreed. It was my home and I had nowhere else to live. The extra money coupled with the renovation costs meant I definitely needed a loan and I decided I would increase the amount I requested from my bank to 25k over three years. This telephone interview went very differently from the first for the 15k. The operator asked me a lot more questions and I found out that they had incorrect information about my employer, my salary etc. They had an old employer and an old salary from a different previous employer. The operator's attitude seemed suspicious and she told me that the extra amount would have to be reviewed by the underwriter which I understood and it would take 48 hours. It was a Wednesday and I explained that I needed the money the following Monday. The operator suggested I go to a branch as they have a more direct relationship with the underwriters. The following day I went to the branch closest to work and sat down with an advisor. She displayed my details and called the underwriter through her asked me numerous questions about deposits etc into my account. This seemed to go on for ages and I was then told that my application had been suspended. I then asked about the guaranteed 15k and I was told that all lending was suspended. I then called the bank and recounted what had happened in the branch. They told me that lending hadn't been suspended but that it was still under review and I would be called. I never have been. I ended up having some money transferred from a superannuation account in Australia and advancing against my cc which had a 0 balance, but on the day of the exchange I decided not to go through the sale of the boat. I didn't think it was fair that I should have to pay any extra money. It tainted the whole experience. I decided to start again from the beginning and find something else. I didn’t lose my deposit as the seller had never deposited the cheque and they didn’t pursue legal action for breach of contract as they had already breeched the original contract by increasing the sale price and failing to deliver on time. I had sought legal advice.

As it happened shortly after I bought a residential mooring in West London that I had originally seen a few months before but had been withdrawn from sale. It cost everything I had but it's already proven to be a good investment as I've been offered considerably more to sell. I now need to borrow the money to have a houseboat built. Despite the value of the mooring I think a marine mortgage will be out of the question as I don't have any more savings and therefore no deposit. I feel the optimum is to borrow as much I can as a personal loan which will cover the fabrication and I will complete the boat myself as my partner is a builder. This way I can use my monthly disposable income to finish the project. As a minimum I can probably get by with 15k although 20k or 25k would be better.

So at this point I don't know what to do. It's been 3 months since I approached my bank about the increased personal loan. I've thought about writing to them and outlining what's happened. I've been with them over 10 years and my account has been conducted in reasonably good order. Maybe highlight the fact that up until recently I've never had a reason to think about changing providers etc. I've also thought about joining a credit union and trying this avenue. To be honest I've felt paralysed by all this and I've been a total ostrich in the sand.
Does anyone have some constructive advice on the best way to get the money I need?