Yacht Finance

Simple and Inexpensive

Our Yacht Finance Loan is ideal if you want to borrow to purchase the boat of your dreams. What’s more you can do this without charging your property to the bank.

What are the features of the Yacht Finance Loan?

With only a boat mortgage as security you can:

• borrow a minimum of €80,000
• borrow up to 70% of the value of the boat
• pay off the Yacht Finance Loan over a maximum period of 10 years.

What conditions do I need to satisfy to qualify for Yacht Finance?

• You must be an EU citizen residing in Malta.
• You must have had an account with HSBC Malta for at least 6 months. Other cases will be exceptionally considered.
• Your minimum annual income is to be €50,000 (single or joint).
• Your total assets must exceed your liabilities by at least €250,000.
• Repayments are not to exceed 40% of your gross annual income inclusive of any other commitments.

What documentation do I need to produce?

• Your ID card
• A professional marine survey of the boat from a pool of surveyors approved by the bank
• Your latest FS3/payslip or your latest income tax return. The bank may also need to verify details from your bank account statements.
• A Statement of Affairs to be completed at the bank.

Do I have to pay any fees?

Yes, you would have to pay a one-time upfront fee of 0.30% of the value of the Yacht Finance Loan. (Minimum fee €450).

This fee does not include other non-HSBC fees, legal fees and professional marine survey expenses.

Do I need to provide any security?

• The main security required will be a mortgage on the boat to be purchased through the financing of the Yacht Finance Loan.
• An insurance policy on the boat is to be taken out and pledged to the bank.
• Adequate life cover to ensure that your loan is repaid in the event of death.

In exceptional circumstances, the bank reserves the right to request additional security.

What is the interest rate charged?

A variable rate of interest of 3.00% over the bank’s base rate. Present effective rate of 5.50% p.a.*

*As at 1 July 2011, the bank’s base rate was 2.50 %.

Can I afford it?

You need to make sure you can afford the repayments before you commit yourself to a loan.

The bank will also carry out internal credit assessment procedures based on your particular circumstances to establish the feasibility of the proposed repayment arrangement.

This loan is subject to final approval from your branch

What do I have to do next?

Simple. For more detailed information of how you may avail yourself of a Yacht Finance Loan you can:

• call your Commercial Relationship Manager or your Branch Manager at your HSBC Bank branch
• call our Customer Service on 2380 2380
• or send us an e-mail