You can get a mortgage for a houseboat or a canal boat. However, you may need to find a specialist lender that offers marine mortgages or finance as most high street lenders do not.
Whilst canal boats and houseboats tend to be cheaper than traditional housing, marine mortgages often require larger deposits, have shorter repayment terms, and some have higher interest rates.
Before taking out a marine mortgage or finance, it’s important to seek expert financial advice from a qualified adviser. It is also sensible to obtain legal advice to ensure you are clear on the terms of the agreement (and this is sometimes a requirement of the lender too).
Getting a marine mortgage: the difference between houseboats and canal boats
Although the process will be similar for houseboats and canal boats, the use and design of the vessel (and the addition of engines and ability to move under their own power for canal boats) will affect your insurance, licensing, as well as your mortgage options available.
Houseboats
Houseboats are primarily designed to be (the clue is in the name!) floating homes. They’re often wider, with larger windows and more spacious living areas. Typically, they will be stationary and moored in a single location and will not have an engine.
Canal boats
Canal boats, including narrowboats, wide-beam boats and Dutch-barges, are designed to navigate inland waterway but can also be moored in a single location. The living spaces can be more compact, as the boats need to fit into narrow rivers and canal locks, but the benefit of being able to relocate easily can be very attractive and logistically helpful.
Independent legal advice for houseboat and canal boat mortgages
Marine mortgages, while less complex than traditional property mortgages, come with unique legal considerations that require expert guidance. For instance, lenders often include specific conditions, such as ensuring compliance with insurance and licensing requirements – which is where we come in. Engaging an experienced marine solicitor is essential to navigating these complexities and ensuring a legally secure and smooth transaction.
At Scott Bailey, our team of marine solicitors is here to help with:
- Reviewing mortgage terms to clarify your obligations
- Ensuring compliance with maritime regulations
- Advising on additional requirements to secure your mortgage, such as mooring agreements or navigation licenses
- Drafting and negotiating marine mortgage agreements
- Conducting title examinations and verifying vessel documentation
- Providing support with regulatory compliance and dispute resolution
By working with knowledgeable solicitors, you can avoid hidden pitfalls, gain confidence in the process, and enjoy a seamless boat-buying experience!
Criteria and eligibility for a marine mortgage
We are often asked if there are specific criteria and eligibility requirements when applying for a mortgage for a houseboat or canal boat, and the answer is – yes. Here’s a list of common considerations:
- Deposit: are you able to afford any up deposit required by the lender upfront?
- Loan-to-value ratio: some marine mortgage lenders have a lower loan-to-value ratio than high street lenders, and the rest will need to be covered by the deposit.
- Intended use of the boat: will you use the vessel for residential use or leisure?
- Proof of income: similarly to traditional mortgages, your ability to repay the loan will need to be demonstrated by providing proof of income and a suitable credit history.
- Boat registration: the boat may need to be registered with relevant authorities, and a proof of sale may be required at this stage.
- Insurance: you will almost certainly need to provide proof of comprehensive boat insurance covering damage, theft and liability. It is worth getting quotes early in the process so as not to slow things down at the last minute.
- Mooring arrangements: if you intend to be stationary with a residential mooring agreement, you may need to provide confirmation of your mooring location and the associated costs. We can advise on mooring licenses, long term leases, and freehold situations.
- Age and condition of the boat: the older the vessel, the more likely it is that marine mortgage lenders will require a recent marine survey to confirm its structural safety. That said, it’s always prudent to have a survey (and your insurers will likely require it in any event). We would always advise having a survey carried out by a qualified surveyor.
Buying a houseboat or canal boat
If you’re purchasing a houseboat or canal boat from its previous owner, your solicitor can review the sales contract, safeguarding you as a buyer every step of the way, and ensuring that all the terms are reasonable and fair.
Proof of ownership and title verification for houseboats and canal boats
When you purchase a house or land, there will be deeds and titles. This is not the case with boats, so proof of ownership will need to be obtained in other ways such as:
- A bill of sale
- Registration documents
- Maritime registry documentation
We can help verify that who you are purchasing your boat from has undisputed ownership of the boat and is in a position to sell it on. It is especially important to obtain proof of ownership when buying from a private seller, as disputes over ownership can be costly and can complicate any ongoing transactions.
Registering a boat
Celia Hawson’s video explains the process of registering a boat, covering some of the key steps and requirements:
By involving an experienced solicitor with expertise in marine finance, you can navigate the complexities of marine mortgages with greater confidence and security.
As well as helping you prepare legally for a mortgage for a houseboat or canal boat, our skilled team of marine solicitors can also advise on the sale and purchase of houseboats, including drafting and viewing agreements, registering a new vessel, handling build and repair contracts, providing independent legal advice for marine finance, or dealing with mooring licenses and leases and much more. Reach out to us today if you’re in need of our specialist help – we’d love to hear from you.
