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Financing
Purchasing a boat with SailTime presents an intelligent choice for many boat owners. There are many advantages to this type of boat ownership allowing benefits from both practical use and also a business standpoint.
SailTime have established a tailored programme with the Bank of Scotland Marine on preferential terms for Owner-Members.
The current programme is based on a 10 year fixed repayment variable rate mortgage.
There are additional considerations when purchasing a boat for this type of programme. Please be sure to read these carefully:
- The bank will require a 20% down payment. Unlike a property mortgage there is no flexibility for a reduced down payment. The bank considers 20% a fair amount for an equity position based on minimizing its risk and future depreciation.
- Will your down payment reduce your “liquid” position in your savings and investment portfolio? Typically the bank will want to see that you can afford the repayments without taking into account the SailTime income.
- Do you have good credit history and have you borrowed substantial or comparable amounts of money in the past for a home or business mortgage? The bank will want to see a good lending and repayment history.
- Have you considered the depreciation on the boat, and will you be keeping the boat after it leaves the SailTime programme? Unlike a home, boats are a depreciating asset. Generally a well-managed boat will hold its value from 5 years onwards. However, market fluctuations for new and used boats will determine the residual value.
It is always a good idea to get your financing in place or pre-approved prior to making a decision to purchase. This is a very easy process, and will give you peace of mind when choosing the boat for your needs. There is no cost for approval involved, and our banking partners can easily supply the application forms to get the process started. We will need a completed loan application, a financial statement, and income tax information/verification.
