Boat Mortgage / Loan - proof of earnings when just starting out

[ryanti]

Hello ladies and gents,

Wondering if you could help with some advice as I'm brand new to contracting and to the world of loans / mortgages.

So the background is that after many many years renting I've finally had enough and would like to buy somewhere - however I've just started contracting and so don't want to / can't be tied to one place. As such I figured it made sense to buy a house that moves, and so I sourced a suitable narrowboat. The boat is £35k and I have £15k on offer from the lovely family as a deposit, so I've been looking to borrow £20k.

In June 2013 I left ~6 year unbroken FT employment (mechanical engineer) and took a sabatical to Canada for around 18months to ride bikes and ski. I returned in Novemeber this year and began contracting for a company in the midlands mid November.

Now being naive to lending and such I have lined the boat up I want to buy and have organised hull inspections and the like expectin to borrow the money without too much issue!
My problem is that I do not have any payslips (or whatever the equialent for dividends is) to date and will not for around 25 days when I will recieve my first payment - the company I work for does 30 day payment terms.


So my question is, is it going to be possible for me to prove I can afford the repayments so the only boat mortgage company in the country can get me approved? - my hourly is £35

Cheers very much for any help
Ryan

[northernladuk]

A house that moves.... only where water is. Not sure that is as good an idea as you think it is IMO...

Anyway, your call...

There are mortgage options for contractors with an odd history who will lend on day rates. I think it is safe to assume a boat mortgage company won't offer such flexibility and with an 18 month gap I'd say you are pretty screwed tbh.

You could try giving John Yerou at Freelancer Financials a call. They specialize in contractor finances so am sure has had many weird and wonderful requests. 020 8421 7999

[ryanti]

Quite an extensive amount of inland water about though, so I can get it close enough for comuting the 3 or 4 nights a week I'm on site.

I'll gve him a call, thanks very much for the reply

[stek]

My mate has a narrow boat and took it to work one day, Liverpool to Manchester. Took three days.

Permie though...

[Scruff]

Forget about a "Boat Mortgage". As a new contractor, who has spent 18 months outside the country, with no track record and who has yet to receive any payment, the likelihood of obtaining a loan of nearly 60% loan to value is not good.

No harm in trying though, but I would suggest that you sign up for a 30 day trial with Experian and obtain your credit score first, before trying...?

[ryanti]

Oh dear, this doesn't look good then.

Credit rating is ok, would be good but I didnt update me electoral role when I moved address just before I left the country - in process now.

Cheers for the replies.

[ryanti]

I also thought that the fairly significant deposit would do me well as it means the loaner is very likely to make thier money back were I to default.

[Mark McBurney@CMME]

Wow, I have no idea where you'd go with that, to be honest.

Would undoubtedly need to be some sort of specialised finance company for boats, as no mainstream mortgage lender will consider without Land Registry title.

May even be easier to look at unsecured finance?

[ryanti]

Yer I'm really struggling with it and starting to think it's not possible. But not giving up yet.

Spoke to Freelancer Financials, who were very helpful, but said my situtation of medium credit rating, no current payment history, sabbatical out of the country AND wanting the loan for something unusual was too much for them! He was going to give it a shot and then I'd forgotten to mention the sabbatical and that was too much!

I'm applying to Royal Scot Larch as that doesnt affect my credit raing, if that fails then I'll apply for the most achievable personal loan.

Cheers, I'll keep this posted with how I get on

[tractor]

'''

Move back in with parents, save for two years, buy it cash. Job done.