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

[Scruff]

Fair point - I just remembered that was the figure Brookson gave me at the start - but you're right that assumes I'm working every single mon-fri. So it's more like £63k before tax, still don't know if this counts as my annual income.

Anyhow, I can ask Brookson it's just a faff to get hold of them with call backs and all that nonsense. But I'll get on the blower now.

I know my options now, cheers for the help

Its not your income, its your Company's Turnover - this is assuming you are running your own Limited Company.

You will not have Company accounts until your first accounting period has ended and your Financial Statements have been drawn up, hopefully, by your Accountant.

If you need interim accounts, then you are going to have to wait a while before they have any meaning.

[ryanti]

Natwest said I wouldn't ba approved - that was when requesting £25k however.
But for whatever reason I come up 9 out of 10 on their credit rating, but im just better than mid range on experian.

Might go and see them perhaps.

[d000hg]

With the loan being so small (relatively) can't you get a regular loan? Maybe even get family to be guarantors on the loan like a graduate might need to when taking a loan for a car?

Boats are very tangible and hold value so maybe just visit your bank and explain the situation.

[ryanti]

Fair point - I just remembered that was the figure Brookson gave me at the start - but you're right that assumes I'm working every single mon-fri. So it's more like £63k before tax, still don't know if this counts as my annual income.

Anyhow, I can ask Brookson it's just a faff to get hold of them with call backs and all that nonsense. But I'll get on the blower now.

I know my options now, cheers for the help

[Scruff]

As a contractor what do I list my annual income as on forms, when there's no option for "other income". My salary is the £8k and the rest is dividends. Before tax the business will make over £70k per year for the contract duration - excluding any OT worked

NLUK quote automaton : "What does your Accountant say?"

[TheFaQQer]

As a contractor what do I list my annual income as on forms, when there's no option for "other income". My salary is the £8k and the rest is dividends. Before tax the business will make over £70k per year for the contract duration - excluding any OT worked

You aren't planning on taking a single day off in the year???

£70k = 2000 hours at £35/hour

Assuming an eight hour day, that means that over the year, you will be working 250 days. Which means that you aren't going to have a single day off during the whole year. To be earning more than £70k, the business will need to have you working for more than eight hours a day, every single day of the year (excluding weekends and bank holidays).

I don't think that's a reliable model to base your figure on, to be honest.

[ryanti]

As a contractor what do I list my annual income as on forms, when there's no option for "other income". My salary is the £8k and the rest is dividends. Before tax the business will make over £70k per year for the contract duration - excluding any OT worked

[ryanti]

Yes, I have looked into the costs and lifesyle of living on a boat, obviously given the amount of money I'm trying to spend. Its cheaper than renting like for like.

last chance saloon is to ask to borrow an additional £10k off another family (which I hate) and then try to get either a personal loan or a 10k money transfer credit card.

[TheFaQQer]

Make sure you know where you can moor the boat as well - that's what adds to the value. Just because there's water there doesn't mean you can "park" up for the night / week and not pay anything.

Property Ladder a few years ago had a bloke that was doing up a boat for not much money - until he needed to find somewhere to moor the thing and really struggled. In the end, the mooring rights for a couple of years in London cost him something like £100k, but at least he could sell the boat on at that point - without mooring rights anywhere, it was pretty much worthless.

I used to work with a guy who would sail his boat from London to Reading on a Sunday, moor it up at Thames Valley Park for nothing because Oracle owned the land, and then sail back on a Friday afternoon having been at work all week. So it is possible, but he didn't need to pay anyone for the right to park up at work, and had a slot in London for the rest of the time.

[Bacchus]

One of the biggest boat mortgage companies pulled out of the market about two or three years ago, but it might be worth googling around

TBQH I think for twenty grand you would be better off getting an unsecured personal loan over five years than a boat mortgage

Living on a narrowboat (or any kind of boat) isn't for everyone though, don't run away with the idea that it is simply cheap accommodation, there are many costs that you wouldn't encounter on dry land, and many hardships like disposing of your waste water, getting frozen toothpaste out of the tube... you might be better off in a motorhome? There are plentiful campsites for around a tenner a night usually within easy public transport reach of towns, you don't have to have them lifted and repainted every couple of years, you don't have to spend a grand a year on a licence...

[Alan @ BroomeAffinity]

Other option is for the limited company to buy it, but I don't fancy he complications of that nor do I imagine thats anymore likely than me getting a loan.

I think you'd struggle getting business finance as well for the same reasons: you've no trading history, there's no security (other than the boat itself and repossession of that would be more bother than it's worth), and it's difficult to see the business case for the asset.

I think you need to accept that this won't happen and I wouldn't waste an awful lot of time on it. Sorry to be a misery guts.

[ryanti]

Other option is for the limited company to buy it, but I don't fancy he complications of that nor do I imagine thats anymore likely than me getting a loan.

[tractor]

'''

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

[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

[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?