How a boat loan deposit works
You pay part of the boat's price yourself and borrow the rest. The deposit is taken off the price before any interest is charged, so every pound of deposit saves interest over the whole term as well as lowering the monthly payment.
Marine lenders often look for 15% to 20% down on used boats and around 10% on new ones. A larger deposit can also unlock a lower rate, because the lender has more equity behind the loan.
Worked example
An £80,000 boat with a £16,000 deposit (20%) leaves £64,000 to finance. At 8.5% over 10 years the monthly repayment is £793.51, and the total repaid is £95,221.01, of which £31,221.01 is interest.
Raising the deposit to £24,000 would cut the amount borrowed to £56,000 and reduce both the payment and the interest, without changing the rate.
Costs a boat loan does not cover
Berthing, insurance, maintenance, lifting and antifouling are separate running costs. Marine mortgages and loans usually require the boat to be insured and may ask for a survey before they lend against it.
Boat loans are often secured on the vessel, so the lender may register a charge over it until the loan is repaid.
Inputs for the boat loan deposit calculator
Vehicle price
The agreed price of the boat, before any deposit.
Down payment
The cash you pay upfront. It is taken off the price before interest is charged.
Interest rate (nominal, not APR)
The yearly rate on the loan, before monthly compounding. Enter the rate from your quote.
Term
How long the loan runs, in years. Boat loans commonly run for 5 to 15 years.
CALCULATOR QUESTIONS
Boat loan calculator with down payment questions
What deposit do boat lenders usually want?
Around 10% on a new boat and 15% to 20% on a used one. Some lenders ask for more on older vessels or longer terms.
Does a bigger deposit reduce the interest?
Yes. You borrow less, so interest is charged on a smaller balance for the whole term.
Can I use a part-exchange boat as the deposit?
Many lenders accept the net equity from a part-exchange as the deposit, once any finance on the old boat is settled.
What term should I choose?
A shorter term means higher payments but less interest. Marine loans often run 5 to 15 years, depending on the age and value of the boat.