A commonly asked question by first-time buyers of boats is what, if any qualifications you need to buy a vessel. Read our explanation to find out the answer, and our advice to make the most of your boat and keep it best protected under your boat insurance.
The short answer is yes: in the UK, you do not have to hold a boating qualification in order to be able to buy a boat as a private boat owner, or to start using it.
However, while it is not a legal requirement to have a boating qualification simply to purchase a vessel, it is important to remember that there are significant advantages to having one; and indeed in some cases you may not be able to use your boat without having a qualification. It is therefore highly recommended that you acquire one.
Up Arrow What do I need a boat qualification for?
Insimple terms, if you are planning on using your boat to visit other areas, it is wise to consider a qualification. As a first-time boat owner, if you do not have a boat qualification, you may find it difficult to gain insurance, or to moor your boat anywhere except your own land. For example, should you wish to join a boat or yacht club, and moor your boat there, or if you are sailing in your vessel and want to visit or stay at another marina, you are likely to need both boat insurance and a boating qualification for their liability purposes.
Having a boating qualification can also help lower your boat insurance premiums.
Up Arrow Do I need a qualification to use my boat outside the UK?
If you wish to use your boat outside UK waters you are in many cases required by law to have a minimum level of competence: the International Certificate for Operators of Pleasure Craft (ICC) being the most common requirement throughout most of Europe, for example.
Up Arrow Insurance benefits of holding a boating qualification
Insurance companies will often require a level of experience for a boat owner, dependent on the size and nature of the vessel. For example, some boat insurance policies require a qualification if you have less than a year’s experience of owning a boat. However, if you hold a full boating qualification form the Royal Yachting Association (RYA), including both the Theory and Practical aspects, you will be qualified for a discount on your boat insurance premiumwith Towergate.
Up Arrow What boating qualifications are available?
The most well-known qualifications are those available from the RYA, which is the UK’s national organisation for all types of boating. This includes dinghy and yacht racing, motor and sail cruising, RIBs and sports boats, powerboat racing, windsurfing, canal and river boat cruising, and personal watercraft.
RYA qualifications are available for all ages and all aspects, from sailing dinghies to yachts, small fishing boats to speed boats. Qualifications can be offered in levels starting from 1 for beginner up to level 4 for experienced, and both Theory and Practical courses and qualifications are available.
A good starting qualification for a first-time private boat owner is the RYA Day Skipper qualification. As you grow more experienced, the RYA Yachtmaster Offshore is worth considering to develop your skills.
Up Arrow Boat insurance from Towergate
Boat insurance from Towergate is available for different vessels and levels of cover depending on what you use your boat for, from third party cover to weather events and personal accident. For more information visit our boat insurance page or call us on 0344 892 1987.
Up Arrow About the author
Adam Summersby is a respected leader with 11 years’ varied experience in niche personal and commercial lines insurance, including caravan, site operators and excess reimbursem*nt, with proficiency in leadership, sales and account management.
FAQs
Credit Score Requirements For Financing A Boat Purchase
What credit score is needed to buy a boat? ›
Boat loans are a type of personal loan to finance the purchase of a new or used marine vessel. Lenders offer boat loans to people with levels of credit ranging from fair to excellent and generally require a minimum score requirement of 680.
Is it hard to get approved for a boat loan? ›
Just like any other loan, you'll need to meet the lender's eligibility criteria. However, boat loans may be harder to get approved for than other types of financing options.
How do most people finance boats? ›
Dealerships usually offer secured boat loans that require you to back the loan with collateral. Most non-dealership lenders offer unsecured personal loans that don't require collateral but are harder to get approved for.
What credit score do you need for Boatzon? ›
What Is the Minimum Credit Score Needed? Our minimum credit score is 620.
What is a good down payment on a boat? ›
Boat loan lenders typically want a down payment of 10% to 20% of the boat's purchase price, but this can vary based on the lender and the boat's cost. Although some lenders offer loans with 0% down, keep in mind that a down payment may lower your monthly payment and reduce the total interest you pay on the loan.
How much are boat payments a month? ›
If you want to roughly estimate what your boat payment will be, calculate 1 to 1.5% of the value of the boat. For example, if you buy a boat worth $100,000, expect to pay between $1,000 and $1,500 per month.
How many months is a typical boat loan? ›
What is the usual term of a boat loan? While unsecured boat loans (do not use the boat as collateral) from general banks often range between two and seven years, IFG's recreational finance banks' terms for secured loans (use the boat as collateral) may reach up to 20 years (240 months).
Can I finance a boat with a 550 credit score? ›
Yes, you can get a loan if you have bad credit — but you might have a difficult time qualifying if you don't have a cosigner or don't offer a large down payment. Before applying for a boat loan, consider taking some time to improve your credit score first.
What are boat payments like? ›
Boat loans are installment loans, meaning that you make fixed monthly payments on the principal balance – plus interest and fees – until the loan is paid off. Since boat loans have fixed rates, the interest rate you pay will never change over the life of the loan and the payments stay the same each month.
Since boat loans are (typically) issued for higher values than car loans, they may have more stringent eligibility requirements than auto loans. This means that you'll be expected to meet higher income, credit score, and even debt-to-income (DTI) thresholds in order to be approved.
What's the oldest year boat you can finance? ›
Factors that Affect Boat Financing Terms
Lenders typically will not finance a boat older than 20 years. Loan amount: The amount of money you need to borrow could help dictate how long you can finance it. Generally speaking, the more money you borrow, the longer you can finance it.
Who has the best boat loan rates? ›
- LightStream. Best boat loan rates. APR. 6.99% to 15.89%* Loan amounts. ...
- Trident Funding. Best for older boats. APR. Starts at 7.87%* ...
- Southeast Financial. Best for large loan amounts. APR. Starts at 6.99%* ...
- SoFi. Best for borrower perks. APR. 8.99% to 29.49%* ...
- My Financing USA. Best for borrowers with bad credit. APR. 6.24% to 19.95%*
Boat Payment and Affordability Calculator Help
| FICO Score | APR |
|---|
| 760-850 | 3.442 % |
| 700-759 | 3.664 % |
| 680-699 | 3.841 % |
| 660-679 | 4.055 % |
2 more rowsStill, if you'd like to take steps to improve your credit, you may want to consider these healthy credit tips:
- Pay your credit card bills often. ...
- Keep a solid payment history. ...
- Consider your credit mix. ...
- Increase your credit limit. ...
- Don't close old accounts. ...
- Regularly monitor your credit report.
You will likely need a credit score of at least 580 for a $2,500 personal loan. Most lenders that offer personal loans of $2,500 or more require bad credit or better for approval, along with enough income to afford the monthly payments.
Can I get a boat loan with a 600 credit score? ›
What credit score do you need for a boat loan? While a few lenders are willing to work with borrowers who have credit scores as low as 580, you're more likely to get low rates with a score above 700.
What is the average loan term for a boat? ›
Boat loan terms can be as short as a few years, but the average boat loan term is typically 10 to 20 years. Financing can vary from one lender to the next, but generally, here's what to expect when you finance a boat: APR range: Prime loan rates may start around 6% to 7% APR for borrowers with excellent credit.
What kind of loan should I get for a boat? ›
You can use a personal loan for nearly any purpose, while secured boat loans may have restrictions on the boat type and age. As a result, a personal loan could give you more flexibility in the make and model year of the boat you buy. Some personal lenders offer loans of up to $100,000.
