Mortgage lenders in the UK offer different types of mortgages based on how the property you are thinking of buying will be used. The main differential is whether the property will be for your own occupation when you are in the UK or whether you intend to use it as an investment property and rent it out.
Although circumstances can change in the future, it is important this decision is made early in the process as the correct type of mortgage will need to be applied for based on the way the property will be used. Combine this with the fact that many yacht crew are paid in what mortgage lenders regard as a ‘foreign currency’ (Euros or Dollars), and as such will not provide a mortgage for any type of property, and all of a sudden, the landscape becomes more complex and the type of mortgage
required even more important.
Given all the considerations and criteria when applying for a mortgage, many yacht crew look for advice and help from a mortgage broker who understands the challenges yacht crew face. The mortgage adviser can guide on how best to achieve the mortgage as well as which type will be
required. Understandably, those who have not bought property before or who are not familiar with the mortgage market may not realise there is a different type of mortgage required if the property is for personal residential use rathe than it being bought as an investment and rented out.
The nuances in the different types of mortgages may appear trivial, but the rules, lending criteria and requirements are very different, which is why making the decision before buying a property is important.
Many yacht crew benefit from discussing their plans and getting answers to any questions they have at an early stage, well before they start their property search. Understanding the options and discussing them with a mortgage adviser who is familiar with the yachting industry can certainly help pave the way to a successful purchase process when the time comes.