An Englishman’s Home is his Vessel
Priced out of the housing market but still keen to get a place of your own? How about life on the ocean wave? Well, river or canal-side actually.
The answer for many people could be to buy a house-boat. A relatively cheap purchase compared to bricks-and-mortar alternatives, there are however additional costs that landlubbers need not worry about.
A decent second-hand narrow boat may cost only £20,000 but the real expense comes with convenient moorings, a rare commodity in city centres, where you’re likely to pay £8,000 a year just for the privilege of docking your vessel in a prime spot.
If you need finance you will need to source a marine finance specialist, who is likely only to lend up to 80% of the boat’s price and at a rate closer to 8% or 9%, rather than the lower one you would secure for a mortgage on a house. And don’t think about purchasing a sea-going vessel – lenders don’t want you skipping the country and not paying them the money back
But if you are still keen to experience life on water, consider the following:
Buyer beware
Houseboats do not come with title deeds in the same way that houses do so make sure the seller actually owns the houseboat and has the legal right to sell it to you. If you don't, you could lose all your money and your boat.
Survey
Unless you know a lot about houseboats, you should get a survey done by someone who is an expert in this area. You don't want to buy a houseboat that is slowly sinking!
Essentials
Houseboats don't always come with running water, electricity, gas, central heating, telephone points, an address or rubbish collection. Can you live without these? How will you access services that are essential to you? Heating will be particularly important, as life on the water can be very cold.
And one final point. If you wish to move to the water to avoid council tax, forget it – you’re still liable.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
