Borrow money for a boat

 

The Netherlands is a water country. Our sea, rivers and canals offer the space for all kinds of water sports and leisure activities: fishing, kite surfing, sailing, you name it. Float down to the horizon on a beautiful summer day, sail with your family to your holiday destination or just cast your anchor at a nice spot and enjoy the tranquility. Delicious. That is why we also have more than half a million boats in the Netherlands! Unfortunately, the purchase costs of a boat are often considerable, more than those of the average car. And so you want certainty about all associated costs and the best way to finance them. Savings or a loan, for example. We can help you make the right decision!

Which loan suits your boat?

Which loan suits your boat?

From sailing boat to fishing boat and from a tailor-made boat loan for when you want to float to the horizon on a beautiful summer day. Simple boat to yacht: various forms of financing are suitable for your dream boat. The most obvious are a personal loan or a revolving credit. With a personal loan you sign a contract when you take out the financing in which it is determined what amount you are going to borrow, how long your loan will run and in what monthly amount you will pay it off during that period. And not only the duration and the monthly installments are fixed, also the interest. That way you will never be confronted with surprises. As soon as your loan application is complete, you will receive the full amount in your account. And you can immediately purchase your boat and start enjoying it!

In addition to the personal loan, your second option is a revolving credit. That works a little differently: instead of borrowing one amount in one go, with a revolving credit you choose a kind of ‘loaner pot’ where you can borrow a maximum of a certain amount, but you can also withdraw what you have paid back. You determine when you withdraw amounts and what you use them for. You only pay interest on the amount withdrawn from your permitted maximum. This interest is variable, and you do not have a fixed term. A revolving credit is useful if you want to finance more of it than just your boat: for example, a renovation or the design of your boat. Usually a personal loan appears to be the best choice, because it has a term that is precisely tailored to the expected lifespan of the boat.

Do you want to request a boat loan?

Do you want to request a boat loan?

Beautiful! That costs you little time and certainly not a difficult research. Our experts are looking for the best deal for you. Thanks to our years of experience and careful procedures, we have built up a broad network; This allows us to submit your data to a wide range of providers (banks) and choose the most advantageous proposal from you. We always arrange the most financially favorable and safest deal. In the form below you enter the amount you would like to borrow for us (such as the full purchase costs of the boat, or part of those costs because you supplement the rest with savings). Then you enter how much you could pay each month. Our loan specialists will then work with your details and send you the best offer without any obligation within a few working days. So that you have the time to make a choice. And who knows how to get rid of the bunches!

Early repayment of the loan and its pros and cons

One of the characteristics to be considered when selecting a loan is certainly the possibility of early repayment. If this option is offered by a bank or non-bank company, it is certainly quite a plus. But there is the other side of the coin. There are not only pros, but there are also pros. Let’s look at a summary of the positive and negative side of early repayment.

The loan will be favored

When a loan is repaid early, this is usually associated with a considerable advantage. That is quite understandable fact. This is primarily due to the fact that interest rates are regularly calculated on the basis of default. This means that if you lower it once to zero, no further interest will be calculated. After the total recalculation, it can be found that a quite interesting amount has been saved, which can be even in tens of thousands depending on the loan amount and interest. Or even much higher.

There is also the possibility of partial repayment

There is also the possibility of partial repayment

The second plus we look at is that there are also possibilities for so-called partial early repayment. This means that it is not necessary to reimburse the entire remaining amount as a lump sum, since only a certain amount can be paid. How big it is is up to you. It is therefore possible to send a higher amount on a regular basis or to throw something in installments. We have already described the reason for doing this above. There is a reduction in the principal and hence the overall advantage of the loan.

You will shorten the length of your commitment

You will shorten the length of your commitment

This is also a positive thing that cannot be forgotten. If we look at how long loans have been granted today, depending on the specific credit product, these may be:

  • Months
  • Years
  • Decades

In terms of months, the shortening is not so striking again – maybe shortening the loan by one month. For others it can be quite striking. There is nothing unusual that you will stop repaying even a few years earlier than specified in the contract. You will end the commitment sooner, easily removing a large burden from your loins. And how does this happen? Again, we are talking only that the principal to be paid is reduced. The lower it is, the fewer repayments will be needed in the future. In the case of long-term loans, each minor extraordinary installment can play a role.

You start with a clean shield

You start with a clean shield

This too is a big plus that early repayment of the loan can bring. Having a so-called clean shield is very good for him in that he does not have to deal with any obligations, just as he has a better bargaining position if he is interested in another loan. Both because he currently has no obligation and, of course, because the previous one has paid off without any problems, which makes him or her an ideal client.

So much for the main benefits of early repayment of the loan. However, it is not possible to neglect possible negatives. What are they? Here is their main list.

Early repayment of the loan may be subject to a charge

Early repayment of the loan may be subject to a charge

Be very careful about this. Before you decide to make an early repayment of the loan, it is advisable to find out whether this option is charged. In the past, this was quite common, while it is now increasingly being abandoned. On the other hand, there are many possibilities in the credit market, so it is good to be in the picture at all times. Possible payments can be divided into three types, namely:

  • Fixed amount
  • Percentage amount
  • Combination of both

As a result, you may benefit from early repayment of the loan, but this may not be as significant as you might expect due to the potential charge. The advantage can thus be indeed negligible.

The amount may be limited

This is often the case with mortgage loans. For them, the conditions are set slightly differently than in the case of a classic loan. So there is nothing extraordinary that the amount you want to pay may be limited. Usually it is talked about a quarter of the principal, always once a year. Even if you have the money, you have to keep it, because there is no easy way to terminate the existing larger loan – that is, if you do not mind the possible penalties associated with it. By limiting the maximum amount, if you don’t want to risk sanctions, you can repay the loan only after a few years, not immediately. And that can be a big problem.

Only certain terms are given

It is not always possible to send an extraordinary installment on the date you want. When we look at what is standard for some loans, primarily for mortgages again, it is nothing more than the need to send money extraordinarily only at certain times. For example, once a year. Here, too, we come to the fact that it is quite a very restrictive requirement, which is connected with the fact that many people quite logically and rightly view it as a possible negative.

You may be missing money

You may be missing money

While it is good to delete a commitment as soon as possible, the other side of the matter should also be taken into account. Such that it is appropriate to create financial reserves. In practice, this means nothing more than trying to have some money with you. If you spend them all on early repayment, you find yourself without a commitment, but if you subsequently need tens of thousands or other amounts, you will not have them. And your only starting point will be the loan, which you will have to apply again. And at the risk of not being approved or associated with more interest than in the previous case.

Why should you save on bank charges?

We are in moments of economic growth or in crisis situation the saving is always welcome. In this article we will once again draw attention to the growth of banking commissions associated with current accounts and tell you how you can save money.

What is the meaning of paying commissions on your current account?

What is the meaning of paying commissions on your current account?

It may make sense to start by talking about the meaning (not) of paying commissions in your current account. It is true that banks have an investment in infrastructure, in computers or in security. Managing bank accounts has a cost. It turns out that it also has benefits, namely:

  • Possibility of the bank to dispose of the money freely to lend to other clients;
  • Obtaining commissions in the movement of account in ATM terminals (if you use the service MB Way will not pay these commissions);
  • Avoid costs associated with financing your operation in financial markets.

Why are there banks that charge and others that do not?

Why are there banks that charge and others that do not?

This is another important question. There are banks that insist on charging for the current accounts service (and even on the ordered accounts). In fact, this is a growing trend especially with the fall in the EURIBOR interest rates. But if some banks have commission-free accounts why are other banks raising theirs?

There are banks that have a greater commercial aggressiveness and that they want to distinguish themselves from their competition not only for price but also for quality of service. They are banks with more agile structures and with less costs and are more prepared for the new paradigm of the banking relationship – See here for our analysis of the best account to order.

Report to annual committees

Report to annual committees

The payment of monthly commissions ends up being ignored by many people. Maybe because the amount is low. Maybe because we have a lot of moves and we end up losing ourselves. What is certain is that if we take into account that € 5 every month is € 60 at the end of the year, we can gain a greater sense of the waste that we are allowing. Let us now imagine that in your house you have 4 commission accounts, you are easily spending € 240 each year on commissions that could be better spent on savings or at leisure, for example

The success of a savings strategy is to create habits that are regularly reinforced over time. To save on your bank commissions it is crucial that you know the banks that do not charge you commissions and what is the best account to order for your specific case. The offer is wide. There are several banks that want you as a customer and these commissions.