A variable rate marine mortgage is linked to Finance House Base Rate (FHBR) and your repayment will go up and down in line with interest rate fluctuations.
With variable rate mortgages lump sum repayments can be made at any time during the agreement with no penalty. The lump sum payment is credited to your account on the day that it is received and from that date the daily interest charge is calculated on the lower balance.
A Fixed Rate Mortgage will secure your monthly payment for the full term of the agreement giving you the knowledge that what ever happens to Bank or Finance House Base Rate your monthly payment and term will remain unchanged.
The Balanced Payment Plan mortgage is one of the most popular facilities available. Linked to Finance House Base Rate (FHBR), the monthly repayments remain fixed through the period of the agreement. The estimated term of the agreement will vary according to fluctuations in the interest rate. Shoreline Asset Finance may be able to offer this facility in both Euro and US Dollars, depending on the lender used, with these facilities being linked to one month Euro LIBOR (London Inter Bank Offer Rate) and one month US Dollar LIBOR respectively. Borrowing in Euro or US Dollars can be particularly favourable should you have an income in these currencies, as there is no exchange rate risk.
With a Low Start Mortgage the monthly repayments are lower in the first 3 years of the agreement. The monthly repayments are increased slightly on an annual basis to ensure full repayment over the agreed term. Alternatively, an interest only period can be considered. Your payments will cover the cost of interest only for a certain period - for example 12 months, with the facility then reverting to capital and interest repayments for the remaining term.
A Marine Mortgage, as the name implies, would give the lender title over the vessel until the mortgage is relinquished.
A Hire Purchase Agreement would again favour the lender with title over the vessel until the facility was repaid and an option to purchase fee obtained by the lender.